HK$

Income (HK$60,000 x 12 months)

720,000

Rental Value (HK$720,000 – HK$2,000) x 10%

71,800

791,800

Less:  Outgoings and expenses

(2,000)

MPF contributions

(18,000)

Expenses of self-education

(15,500)

Net Total Income

756,300

Less:  Basic Allowance

(132,000)

Net Chargeable Income

624,300

Tax at progressive rates

First HK$50,000 @ 2%

1,000

Next HK$50,000 @ 6%

3,000

Next HK$50,000 @ 10%

5,000

Next HK$50,000 @ 14%

7,000

Remainder HK$424,300 @ 17%

72,131

88,131

Less:  Tax reduction, capped at HK$20,000

(20,000)

Final Tax 2019/20

68,131

Tax at standard rate

HK$756,300 @ 15%

113,445

Less:  Tax reduction, capped at HK$20,000

(20,000)

Tax thereon (not applicable since tax amount will be higher)

93,445

Final tax 2019/20 (as above)

68,131

Less:  Net provisional tax charged 2019/20

(60,000)

Balance of tax payable

8,131

Add:  Provisional tax 2020/21

88,131

Total tax payable

96,262