Suppose you got married in July 2005, and your wife does not have any income. In these circumstances, you are entitled to a married person's allowance as from 2005/06. You may pay less tax if you apply for holding over part of the 2005/06 Provisional Salaries Tax ("PST") by providing the particulars of your marriage and of your wife.

Your application must be made in writing and received not later than 28 days before the due date for payment of the PST, or 14 days after the issue of the demand note concerned, whichever is the later.

If the Assessor accepts your application, the amount of PST will be reduced from $14,800 to $560, computed as follows:

Year of Assessment 2005/06
HK$

Net Total Income
228,000

Less: Married person's allowance
(200,000)

Net Chargeable Income
28,000

Tax payable $28,000 x 2% progressive rate
560

What are the other grounds for applying holdover of Provisional Salaries Tax?

You may make an application within the time limit described above if any one of the following conditions can be satisfied:

• you have a significant reduction in income that is likely to be greater than 10% of the assessed net chargeable income;
• you have become entitled to a new allowance, e.g. child allowance for a newborn baby;
• your salary income has ceased; or
• you have objected to the Salaries Tax assessment for the preceding year.