Question 3

James Bond is working as an Executive Manager for a UK company. From December 2017, he started to travel around the region visiting the Company's operations. James's travelling schedule is extracted as follows:

Place of stay Purpose of stay

2017 3-18 NovKoreaBusiness

10-31 Dec Hong Kong Business

2018 1-20 Jan Hong Kong Business

1-18 FebHong Kong Business

1-15 Mar Japan Business

1-21 Apr Hong Kong Business

1 May -30 Jul Hong Kong Business & 10 days of annual leave

8-31 Aug Hong Kong Business

5-20 Sept Singapore Business

1-21 Oct Hong Kong Business

15 Nov-20 DecHong Kong Business

2019 20 Jan-20 FebSingapore/China Business

2 Apr-28 MayChinaBusiness

All remuneration was paid into James's bank accounts in the UK. The monthly salary for James is $120,000 per month in year 2017 to 2019.

Required:

(a) Based on the information provided, determine whether James is subject to salaries tax in Hong Kong in respect of the employment income he received from the UK company for each of the years of assessment 2017/18 and 2018/19 and if yes, on what basis. Briefly explain.

(b) Calculate James's Hong Kong assessable incomes, if any, for the years of assessment 2017/18 and 2018/19.