Reward/rebate from bank

To attract the depositors to upgrade their status to a more prestigious class (e.g. from ordinary to "premium" or "premier" depositors), a bank has offered to give a new "premium" or "premier" depositor specified cash rebate/reward if he/she has met certain criteria (e.g. deposited with the bank at a specified amount, and conducted certain number and amount of foreign currencies or share purchase transactions within a specified period of time). The bank has also offered a specified referral cash reward for any existing "premium" or "premier" depositor who has successfully referred a new "premium" or "premier" depositor. In view of the above, should i) a new "premium" or "premier" depositor report the cash rebate/reward received and ii) an existing "premium" or "premier" depositor report a referral cash reward as income in their tax assessments? Thank you.

Hi

Please refer to guidance here SAIM8020 - Annual payments: meaning of annual payment
and associated links.

Thank you

Thank you for the reply. Does it mean the cash rebates/rewards above mentioned are not caught as income under self assessment if they do not possess all the 4 characteristics set out in SAIM8020? Thank you.

Hi Gloria Leung,
Annual payments are taxable.
To be considered an annual payment, the sum must possess the 4 characteristics at SAIM8020.
Cashback payments and switching incentives are not taxable.
Thank you.