Sindy and her husband are Hong Kong citizens who were born in Hong Kong. In January 2015, Sindy quitted her job and went to California to accompany her son who studied in a high school there. She planned to come back to Hong Kong during the winter break of her son in December 2015 to stay with her husband and daughter who live in Hong Kong.

In US, Sindy met her US friends occasionally. In one of these gatherings in September 2015, her friend, Jane, who holds managerial position in an American-based multinational firm (XYZ Limited) persuaded Sindy to join her company as the headquarter’s Internal Auditor. Two weeks later, Sindy signed the employment contract in Jane’s California office. According to the contract, Sindy was required to perform audit duties for 10 working days in December 2015 in the Hong Kong office of XYZ Limited. When she came back to US in January 2016, she was then required to work in the US office to prepare for a report of audit findings to the US headquarter. The remuneration was paid to her bank account in California by the headquarter.

In the year of assessment 2015/16, Sindy stayed in Hong Kong for 30 days.

Required:

Explain the consideration in DIPN 10 for determining the locality of an employment under salaries tax. Explain whether and how Sindy’s employment is subject to salaries tax in Hong Kong for the year of assessment 2015/16. 

Answer rating: 100% (QA)

In order to determine the locality of an employment the In land Revenue Department IRD will consider the following factors 1 The place where the dutie... View the full answer