Chapter:	112	Title:	Inland Revenue Ordinance	Gazette Number:	E.R. 1 of 2012
Section:	9	Heading:	Definition of income from employment	Version Date:	09/02/2012

(1) Income from any office or employment includes-

(a) any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite, or allowance, whether derived from the employer or others, except-
(i)-(iii) (Repealed 24 of 2003 s. 3)
(iv) subject to subsection (2A), any amount paid by the employer to or for the credit of a person other than the employee in discharge of a sole and primary liability of the employer to that other person, not being a liability for which any person was surety; (Added 1 of 1991 s. 3)
(aa) so much of any amount (other than a pension falling under section 8(1)(b)) received by an employee before or after his employment ceases, whether by way of commutation or otherwise, from a pension or provident fund, scheme or society, other than a recognized occupational retirement scheme or mandatory provident fund scheme, as is attributable to the employer's contributions to that fund, scheme or society; (Added 2 of 1971 s. 6. Amended 76 of 1993 s. 4; 4 of 1998 s. 6)
(ab) so much of any amount (other than a pension falling under section 8(1)(b)) received by an employee, whether by way of commutation or otherwise, under a recognized occupational retirement scheme-
(i) otherwise than because of termination of service, death, incapacity or retirement of the employee as is attributable to the employer's contributions under the scheme in respect of the employee; or
(ii) by reason of termination of service as is attributable to such part of the employer's contributions under the scheme in respect of the employee that exceeds the proportionate benefit calculated in accordance with section 8(5); (Added 76 of 1993 s. 4. Amended 4 of 1998 s. 6)
(ac) any payment received by an employee pursuant to a judgment given under section 57(3)(b) of the Occupational Retirement Schemes Ordinance (Cap 426) that is attributable to his employer's contributions to the occupational retirement scheme in respect of which the judgment was given; (Added 76 of 1993 s. 4)
(ad) so much of the accrued benefit that an employee has received, or is taken to have received, from a mandatory provident fund scheme (otherwise than on retirement, death, incapacity or termination of service) as is attributable to contributions paid to the scheme by the employee's employer; (Added 4 of 1998 s. 6)
(ae) so much of the accrued benefit that an employee has received, or is taken to have received, from a mandatory provident fund scheme as is attributable to voluntary contributions paid to the scheme by the employee's employer that exceeds the proportionate benefit calculated in accordance with section 8(5); (Added 4 of 1998 s. 6)
(b) the rental value of any place of residence provided rent-free by the employer or an associated corporation; (Amended 38 of 1975 s. 2)
(c) where a place of residence is provided by an employer or an associated corporation at a rent less than the rental value, the excess of the rental value over such rent; (Amended 2 of 1971 s. 6; 38 of 1975 s. 2)
(d) any gain realized by the exercise of, or by the assignment or release of, a right to acquire shares or stock in a corporation obtained by a person as the holder of an office in or an employee of that or any other corporation. (Added 2 of 1971 s. 6)

(i) pays all or part of the rent payable by the employee; or
(ii) refunds all or part of the rent paid by the employee,
such payment or refund shall be deemed not to be income; (Replaced 1 of 1991 s. 3)
(b) a place of residence in respect of which an employer or associated corporation has paid or refunded all the rent therefor shall be deemed for the purposes of subsection (1) to be provided rent free by the employer or associated corporation;
(c) a place of residence in respect of which an employer or associated corporation has paid or refunded part of the rent therefor shall be deemed for the purposes of subsection (1) to be provided by the employer or associated corporation for a rent equal to the difference between the rent payable or paid by the employee and the part thereof paid or refunded by the employer or associated corporation. (Added 36 of 1954 s. 2. Amended 38 of 1975 s. 2; 1 of 1991 s. 3)

Provided that-
(a) if such place of residence be a hotel, hostel or boarding house the rental value shall be deemed to be 8% of the income aforesaid where the accommodation consists of not more than 2 rooms and 4% where the accommodation consists of not more than one room; (Replaced 10 of 1950 s. 3. Amended 38 of 1975 s. 2)
(b) if such place of residence be other than a hotel, hostel or boarding house any person may elect to have, in respect of the years of assessment commencing on or after 1 April 1983, the rateable value included in the valuation list prepared under section 12 of the Rating Ordinance (Cap 116) or, if the place of residence is not so included, the rateable value ascertained in accordance with Part III of that Ordinance, substituted for rental value at 10% as aforesaid. (Replaced 19 of 1996 s. 4)

(a) any benefit that is-
(i) provided by an employer otherwise than in connection with a holiday journey; and
(ii) capable of being converted into money by the recipient; (Replaced 24 of 2003 s. 3)
(b) any amount paid by an employer in connection with the education of a child of an employee; or (Amended 24 of 2003 s. 3)
(c) any amount paid by an employer in connection with a holiday journey, (Added 24 of 2003 s. 3)
from income from any office or employment. (Added 1 of 1991 s. 3)

(a) the gain realized by the exercise at any time of such a right as is referred to in paragraph (d) of that subsection shall be taken to be the difference between the amount which a person might reasonably expect to obtain from a sale in the open market at that time of the shares or stock acquired and the amount or value of the consideration given whether for them or for the grant of the right or for both; and
(b) the gain realized by the assignment or release of such a right as is referred to in paragraph (d) of that subsection shall be taken to be the difference between the amount or value of the consideration for the assignment or release and the amount or value of the consideration given for the grant of the right,
(a just apportionment being made of any entire consideration given for the grant of the right to acquire the said shares or stock and other shares or stock or otherwise for the grant of the right to acquire those shares or stock and for something beside):
Provided that neither the consideration given for the grant of the right nor any such entire consideration shall be taken to include the performance of any duties in or in connection with the office or employment by reason of which the right was granted, and no part of the amount or value of the consideration given for the grant shall be deducted more than once under this subsection. (Replaced 2 of 1971 s. 6)

(a) a corporation over which the employer has control;
(b) if the employer is a corporation-
(i) a corporation which has control over the employer; or
(ii) a corporation which is under the control of the same person as is the employer;

(a) by means of the holding of shares or the possession of voting power in or in relation to that or any other corporation; or
(b) by virtue of any powers conferred by the articles of association or other document regulating that or any other corporation,
that the affairs of the first-mentioned corporation are conducted in accordance with the wishes of that person; (Added 38 of 1975 s. 2)

(a) a journey taken for holiday purposes; or
(b) where a journey is taken for holiday and other purposes, the part of the journey taken for holiday purposes; (Added 24 of 2003 s. 3)