| Can
both spouses claim their children's allowance |
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| 3. |
Q: |
We have two children.
Can each of us claim one child allowance? How can I nominate
my spouse to claim child allowance? |
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A: |
Child allowance for any
year must be claimed en bloc by only one of the parents.
Generally speaking, it will be advantageous
for the parent who has the higher income to claim child allowance.
However, if one of you is being assessed at standard rate,
it will be advantageous for the other to claim.
Taxpayers claiming child allowance are required
to furnish details of their children in Part 8.2 of the Tax
Return - Individuals. However, the method of nominating the
spouse to claim child allowance has been made simple. The
spouse nominated to claim child allowance will complete Part
8.2. The other spouse who does not claim child allowance will
simply leave Part 8.2 blank.
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| The
same child allowance claimed by more than one person |
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| 4. |
Q: |
What
will IRD do if the child allowance in respect of
an unmarried child is claimed by more than one person?
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A: |
If
a taxpayer, his/her separated or divorced spouse and other
persons are entitled to claim child allowance in respect of
the same unmarried child, the Commissioner will apportion
the child allowance having regard to the contributions made
by each applicant to the maintenance and education of this
child.
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| An
illegitimated child |
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| 5. |
Q: |
If
a taxpayer is supporting an illegitimate daughter, can he/she
claim child allowance in respect of this daughter?
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A: |
The father or mother is entitled to claim child allowance in
respect of this daughter, whether or not they are legally married
as long as this daughter meets all the other requirements for
claiming child allowance.
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| An
unemployed child maintained by parents |
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| 6. |
Q: |
My son
is now 20 years old. He finished schooling in June 2008 and
is now unemployed. I am still maintaining him and wonder if
I am eligible to claim child allowance in respect of this
son.
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A: |
If your child
is over 18 but under 25, child allowance could be granted
if your child is receiving full time education at any time
during the year of assessment. In your case, you may claim
child allowance for the year of assessment 2008/09
in view of the fact that your son was receiving full
time education during April 2008 to June 2008.
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| Apprenticeship
scheme of the Vocational Training Council |
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| 7. |
Q: |
My son is 20 in age this year and
has participated in the apprenticeship scheme [The Apprenticeship
Ordinance Cap. 47] offered by the Vocational Training Council.
Can I claim an allowance in respect of this son?
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A: |
The contract of apprenticeship
signed under the apprenticeship scheme is an employment contract
between the apprentice and the employer. Therefore, your son
is working and is not receiving full-time education. Since
he aged over 18, you are not entitled to claim child allowance
in respect of him.
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| Training
scheme of the Vocatinal Training Council |
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| 8. |
Q: |
My
son is 20 in age this year and has participated in a training
scheme offered by the Vocational Training Council. Can I claim
an allowance in respect of this son?
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A: |
The Training Centres operated
by Vocational Training Council offer various courses of different
levels. They range from one or two-year full-time courses,
pre-employment training courses to part-time courses for the
working people. You are entitled to claim child allowance
in respect of your son if he studies a full-time course, which
means he receives full-time education. If he only takes short-term
courses or part-time courses, he does not receive full-time
education, and you are therefore not entitled to claim child
allowance in respect of him.
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| Youth
Pre-employment Training Programme offered by the Labour Department |
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| 9. |
Q: |
My
son is 20 in age this year and has participated in the Youth
Pre-employment Training Programme offered by the Labour Department.
Can I claim child allowance in respect of this son?
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A: |
The Youth
Pre-employment Training Programme offered by the Labour Department
is designed to get young people prepared for entering the
employment market in the future. The programme offers short-term
modular training courses and workplace attachment training
which are different from those full-time courses or training
provided by universities or colleges. Since your child is
over 18 in age and is not receiving full-time education, you
are not entitled to claim child allowance in respect of him.
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Dependent
Parent/Grandparent Allowance
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| Dependant
should ordinarily reside in Hong Kong |
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| 11. |
Q: |
How to determine
whether a dependent parent is ordinarily resident in Hong
Kong?
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A: |
To determine
whether a dependent parent is ordinarily resident in
Hong Kong, IRD will consider his/her social and economic
ties with Hong Kong. Objective factors taken into consideration
include:
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| (i) |
the number of days he/she
stayed in Hong Kong;
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| (ii) |
whether he/she has a permanent dwelling
in Hong Kong;
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| (iii) |
whether he/she owns
a property for residence outside Hong Kong;
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| (iv) |
whether he/she works or carries out
a business in Hong Kong or outside Hong Kong;
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| (v) |
whether his/her relatives are mainly
residing in Hong Kong or outside Hong Kong.
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Generally
speaking, IRD does not consider a dependent
parent, who possesses Hong Kong Identity Card, is ordinarily
resident in Hong Kong if he/she lives outside Hong Kong
continuously and stays in Hong Kong for a limited number
of days just for paying visit to relatives. |

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| Dependant
living in Mainland of China |
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| 12. |
Q: |
My parent/grandparent
is living in the Mainland of China. Am I entitled
to dependent parent/grandparent allowance?
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A: |
Dependent
parent/grandparent allowance would only be granted if the
dependant is ordinarily resident in Hong Kong during the relevant
year of assessment. Since your parent/grandparent is living
in the Mainland, you are not entitled to claim dependent parent/grandparent
allowance.
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| 13. |
Q: |
My parents are over 55. They have Hong Kong identity
cards but have moved to live in the Mainland. Am I entitled
to dependent parent allowance?
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A. |
If your parents have moved to the Mainland and they do
not intend to continue to live in Hong Kong and they only
return to Hong Kong to visit relatives in Hong Kong occasionally,
they cannot be regarded as ordinarily resident in Hong Kong
and you will not get dependent parent allowance. However,
if your parents only stay in the Mainland for short periods
from time to time, they are still regarded as ordinarily
resident in Hong Kong and you can claim dependent parent
allowance.

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| Both
dependant and taxpayer emigrated overseas |
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| 14. |
Q: |
I am a government pensioner and have emigrated to Canada two
years ago. Can I claim Dependent Parent Allowance in respect
of my mother who has been living with me in Canada and supported
by me throughout the year.
Please be advised that my mother and I had been living in
Hong Kong for over 44 years before our emigration to Canada.
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A: |
To be eligible
for Dependent Parent Allowance, the taxpayer must have maintained
at any time during the year a parent who
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is ordinarily resident in Hong
Kong; |
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is age over 55; and |
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has either resided with the taxpayer
for a continuous period of 6 months or has received
from the taxpayer not less than $12,000 in money towards
his/her maintenance during the year. |
To be eligible for the allowance, all the
above conditions must be fulfilled. As your mother has been
residing with you in Canada and was not ordinarily residing
in Hong Kong, you fail to meet the criteria and cannot get
the allowance.

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| Only
the year of birth of the dependant is known |
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| 15. |
Q: |
I
maintain both parents who were born in 1954. But their identity
cards only record the year of birth without the month and
date. Can I claim Dependent Parent Allowances in the Tax Return
for the year of assessment 2008/09?
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A: |
If your parents
were born between January and March 1954, they have reached
the age of 55 in the year of assessment 2008/09.
You are then entitled to claim the Dependent Parent Allowances
in respect of your parents. If they, however, were born between
April to December 1954, they are still under 55 in the year
of assessment 2008/09.
Therefore, you should first ask your parents
for their correct months of birth according to the best of
their information and knowledge. If your parents have reached
the age of 55 in the year of assessment 2008/09,
you can complete Part 8.4 of the Tax Return and furnish the
relevant information such as their correct years and months
of birth.

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| Living
together with the dependant |
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| 16. |
Q: |
I
maintain my parents who aged over 55 and live throughout the
year in the same building of my home but on a different floor.
All the expenses of their place of residence are paid by me.
Am I entitled to claim Additional Dependent Parent Allowance?
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A: |
In general,
a person living in the same building of that of the dependent
parents but on a different floor does not satisfy the requirement
of residing with the dependent parents for the purpose of
claiming Additional Dependent Parent Allowance.

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| 17. |
Q: |
My
dependent mother is over 55 in age. She visits my home everyday
from morning till night to take care of my children. Then
she returns to her home to sleep. Am I entitled to Additional
Dependent Parent Allowance?
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A: |
Based on the
situation you mentioned, your dependent parent does not reside
with you, so you are not entitled to Additional Dependent
Parent Allowance.

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| 18. |
Q: |
My parents are
already over 55 in age. We live in the same flat which is
owned by my parents. Am I entitled to Dependent Parent Allowance
and the Additional Allowance?
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A: |
The ownership
of the residential flat is not a factor to determine whether
your parents reside with you for the purpose of Dependent
Parent Allowance. Even if your parents reside with you, you
should also fulfill the requirement on maintaining your parents
before you can claim the Dependent Parent Allowance or the
Additional Allowance. If your parents reside with you, otherwise
than for full valuable consideration, for a continuous period
of not less than 6 months, you are entitled to claim Dependent
Parent Allowance. If they reside with you, otherwise than
for full valuable consideration, continuously throughout the
year of assessment, you are also entitled to the Additional
Allowance.

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| How
to report and the supporting evidence required to substantiate
the contribution made to the dependent parent |
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| 19. |
Q: |
In the year of assessment 2008/09,
I contributed $20,000 in total towards my father's maintenance
and I wish to claim Dependent Parent Allowance. How should I
report this contribution? Do I need to submit any supporting
evidence together with my tax return?
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A: |
Before you complete
your tax return, you should read the "Guide to Tax Return
- Individuals" carefully to ensure that you are entitled
to claim Dependent Parent Allowance. To claim the allowance,
you should complete the relevant parts, which are applicable
to your claim, of the Part 8.4 of the tax return. You don't
have to state the amount of contributions actually paid in
the year or to submit any documentary evidence with your tax
return. However, you need to keep the relevant records for
6 years. The assessor may require you to provide such evidence
when your case is subsequently selected for review.
Note : The boxes for item (6)(ii) in Part
8.4 of the Tax Return - Individuals concern deduction claims
for Elderly Residential Care Expenses. If you wish to claim
Dependent Parent Allowance, please do not fill in the amount
of actual contributions in these boxes.

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| Substantiated
evidence required when your case is selected for review |
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| 20. |
Q: |
When IRD selects
my case to review my claim for Dependent Parent Allowance,
what documents do I need to submit in order to substantiate
that my dependent parent was residing with me?
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A: |
IRD would require
the taxpayer to supply a copy of the dependant's Hong Kong
identity card. Further, the taxpayer is required to provide
evidence to substantiate that the dependant was residing with
the taxpayer in the same address during the year of assessment
concerned, e.g. bank statement. IRD would match the information
supplied by taxpayers with that in its computer. IRD would
also obtain information from other government departments,
including the Immigration Department, Social Welfare Department
and Housing Department in order to verify the information
supplied by the taxpayer is in order.
[Please click here
for information about documentary evidence required to substantiate
disabled dependants.]

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| 21. |
Q: |
I contributed
not less than $12,000 annually to maintain my father. What
proof can I provide to IRD to substantiate my claim?
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A: |
Generally speaking, IRD would not ask taxpayers to provide
the receipts of the daily expenses of their dependent parents.
Taxpayers can provide information on how they contribute to
their parents' maintenance, for example, if contribution is
made through automatic bank transfer or regular withdrawals
from bank accounts, copies of the relevant bank statements
can be provided for verification. Taxpayers can also supply
the rental receipts of their dependent parent's residence,
utilities and medical bills, if any, for examination when
their cases were selected for review. If the information provided
is contrary to information available to the IRD, taxpayers
may be required to provide further information or evidence
relevant to their claims.
[Please click here
for information about documentary evidence required to substantiate
disabled dependants.]

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| "Kai
Ma" under Chinese custom with no official legal document |
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| 22. |
Q: |
I regard a
lady as my mother ("Kai Ma"). We went through a
ceremony according to Chinese custom without any official
legal documents but in the presence of my relatives. She does
not have any other relatives and I am the one who maintain
her. Can I claim Dependent Parent Allowance in respect of
her?
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A: |
Inland Revenue
Ordinance allows a taxpayer to claim an allowance in respect
of an adopted parent or adopted grandparent. By virtue of
the Inland Revenue Ordinance, ¡§adopted¡¨ refers to adoption
in any manner recognized by the law of Hong Kong. Accordingly,
your "Kai Ma" is not within the statutory meaning
of the word ¡§parent¡¨ for the purpose of this allowance.

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| Step
parent without a registered marriage with parent |
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| 23. |
Q: |
We maintain my wife's
stepfather who is over 55 in age this year but he has not
registered a marriage with my mother-in-law. Can we claim
Dependent Parent Allowance in respect of my wife's
stepfather?
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A: |
Without a registration
of marriage, your wife's stepfather does not satisfy the definition
of ¡§parent¡¨ under the Inland Revenue Ordinance. You are not
entitled to Dependent Parent Allowance unless your wife's
stepfather married to your mother-in-law according to the
traditional Chinese custom before the amendment of the matrimonial
law on 7 October 1971.
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| Natural
and adopted parent of the dependant |
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| 24. |
Q: |
My father
is a legally adopted son. Can I claim Dependent Grandparent
Allowance in respect of my father's
natural parent and adopted parent?
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A: |
Yes.
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| Ex-spouse
died after divorce and I maintain his / her parent / grandparent |
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| 25. |
Q: |
I am divorced and
my ex-spouse died after our divorce. I am responsible for
the maintenance of my ex-spouse’s parents. Am I entitled
to claim Dependent Parent Allowance in respect of my ex-spouse's
parents?
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Under the Inland
Revenue Ordinance, a taxpayer can claim an allowance in respect
of a parent or grandparent of his/her deceased spouse. A deceased
spouse means the person who remained as your spouse when he/she
died. However, as you divorced your spouse before his/her
death, you cannot claim Dependent Parent Allowance in respect
of them.
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| Allowances
of the parents and grandparents of my spouses |
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| 26. |
Q: |
I am a Muslim and have legally
married three wives in Malaysia. Can I claim allowances in
respect of the parents and grandparents of my three wives?
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A: |
No. You are
only entitled to claim for the allowances in respect of the
parents or grandparents of your principal wife. Under the
Inland Revenue Ordinance, ¡§spouse¡¨ means a husband or wife
who is a married man / woman and ¡§Marriage¡¨ means-
| (a) |
any marriage recognized
by the law of Hong Kong; or
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| (b) |
any marriage, whether or not so
recognized, entered into outside Hong Kong according
to the law of the place where it was entered into but
shall not, in the case of a marriage which is both potentially
and actually polygamous, include marriage between a
man and any wife other than the principal wife. |
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| Multiple
claims for the allowance of the same dependant |
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| 27. |
Q: |
My
parents have claimed Dependent Parent Allowance in respect
of their own parents. Can I claim Dependent Grandparent Allowance
in respect of the same dependant?
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A: |
In respect of
the same dependant, only one individual will be granted an
allowance. You should agree with your parents and decide who
claims the allowance in respect of your grandparents. You
should send a written notice about the decision to the officers
of the IRD for their action.
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| 28. |
Q: |
My
grandparents lived together with my parents whereas I live
apart from them. Given that I am granted Dependent Grandparent
Allowance, can my parents claim Additional Dependent Parent
Allowance only on the ground that they reside with my grandparents?
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A: |
In respect of
the same dependant, only one individual will be granted an
allowance. As you are entitled to claim Dependent Grandparent
Allowance in respect of your grandparents, your parents cannot
claim any Dependent Parent Allowance or Additional Dependent
Parent Allowance in respect of the same dependant.
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| 29. |
Q: |
My
brother and I have both claimed Dependent Parent Allowance
in respect of my father but have not yet reached an agreement
as to who should entitle to the allowance. What would the
Commissioner do? Will the Commissioner apportions the allowance
according to our respective contributions to our father's
maintenance?
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Where more than
one person is entitled to claim the allowance in respect of
the same parent or grandparent for the same year of assessment,
IRD will not consider the relevant claim until
an agreement has been reached to decide who will claim the
allowance in that year of assessment. Furthermore, where an
allowance in respect of a dependent person has been granted
to a taxpayer and, within 6 months of its being granted, another
person claims to be entitled to the allowance, IRD
will issue additional assessments, withdrawing the dependent
parent allowance previously granted to that taxpayer if he
is not able to reach an agreement with the other claimant
within a reasonable time. At present, there is no statutory
provision to apportion the Dependent Parent or Grandparent
Allowance/Additional Allowance.
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Single
Parent Allowance
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