Hong Kong's top earner in 2005-06 paid $101 million in salaries tax, the Inland Revenue Department says, adding the top earner for profits tax paid $2.54 billion.

According to the department's figures, the amount of tax paid by the top 10 salaries taxpayers ranged from $13 million to $101 million while the amount of tax paid by the top 10 profits taxpayers ranged from $560 million to $2.54 billion.

The department said the amounts of tax paid by a few taxpayers were particularly high, probably because they were in receipt of income other than salaries. Bonuses, commissions, allowances and share option gains also form part of the assessable income of a taxpayer.

The level of profits tax paid, however, depends much on the business performance of individual companies.

Total salaries tax up 9%

Up to February 28 in the financial year 2005-06, the total salaries tax assessed was $39 billion, an increase of some 9% over the total of $35.9 billion for the corresponding period in 2004-05.

The total profits tax assessed for the same 11-month period was $66.9 billion, an increase of 16% over the total of $57.7 billion in the previous year.

The increases in salaries tax and profits tax assessed are evidence of the favourable business performance and improved labour market prevailing in 2004-05.