Normally, the IRD issues individual tax returns (Form BIR 60) on the first working day of May each year. An individual taxpayer should report his/her salaries, rental income from solely owned properties and profits from sole-proprietorship businesses.
Time limit for filing is as follows:
Status | Normal Due Date (Form BIR 60) |
Not involving sole-proprietorship | Within 1 month from the date of issuance |
Involving sole-proprietorship | Within 3 months from the date of issuance |
An automatic extension of 1 month will be given for filing the tax return electronically.
If an individual taxpayer has appointed a tax representative, an extension of time for submission of tax return will be granted under the block extension scheme. For instance, the extended due date of tax return is generally as follows:
Status | Extended Due Date for represented cases |
Not involving sole-proprietorship | 2 July |
Involving sole-proprietorship | 2 October |
Salaries tax is chargeable on most but not all of the income from employment, offices and pension arising in or derived from Hong Kong. Examples of chargeable income include:
· Salaries, Wages and Director's fees
· Commissions, Bonuses, Leave Pay, End of Contract Gratuities and Payments In Lieu of Notice
· Allowances, Perquisites and Fringe Benefits
There are two methods of calculation of salaries tax:
(i) Charging at progressive rates to net chargeable income (chargeable income after deductions and allowances)
(ii) Charging at standard rate to net income (chargeable income after deductions but before allowances)
Salaries tax is payable on the lower amount of (i) and (ii).
Progressive tax rates table:
Net chargeable income (in HK$) | Salaries Tax rate |
0 – 50, 000 | 2% |
50,001 – 100,000 | 6% |
100,001 – 150,000 | 10% |
150,001 – 200,000 | 14% |
Remainder | 17% |
Standard Salaries Tax rate table:
2018/19 to 2023/24 | 2024/25* | |
Standard Rate | 15% | |
Two-tiered Standard Rates On the first $5,000,000 of net income | 15% | |
Remainder | 16% |
Major deduction claims under Hong Kong Salaries Tax:-
- Contributions to a Mandatory Provident Fund Scheme or Recognized Occupational Retirement Scheme
- Tax Deduction for Domestic Rents
- Home Loan Interest
- Approved Charitable Donations
- Expenses of Self-education
- Elderly Residential Care Expenses
- Qualifying Premiums Paid under the Voluntary Health Insurance Scheme (VHIS) Policy
- Tax Deductions for Qualifying Annuity Premiums and Tax Deductible MPF Voluntary Contributions
Major allowance claims under Hong Kong Salaries Tax:-
- Married person’s allowance
- Child allowance
- Dependent brother or dependent sister allowance
- Dependent parent and dependent grandparent allowance
- Single parent allowance
- Disabled dependant allowance
- Personal disability allowance
60 days rule tax exemption
Income from services rendered in Hong Kong during visits not exceeding a total of 60 days in the year is also excluded from tax. A visit means a short or temporary stay. Whether the nature of a trip to Hong Kong made by a Hong Kong resident is a visit or not depends on the circumstances of each case. In general, if a Hong Kong resident has a work base in a foreign country and is required to render services there as a permanent employee, the person’s occasional return to Hong Kong will be recognised as a visit.
In deciding whether visits to Hong Kong exceed a total of 60 days, the “days of presence” are counted. A day is counted even though you may be present in Hong Kong for only part of that day. Therefore, the day of departure from Hong Kong and the day of arrival in Hong Kong are counted as two days.
If you disagree with the individual tax assessment, you can lodge an objection and appeal. You must submit a notice of objection in writing stating the grounds of the objection to the IRD within one month after the date of issue of the assessment.
You may also apply in writing for holding over of the whole or part of the provisional tax on the grounds as specified in the Inland Revenue Ordinance. You need to submit the application not later than 28 days before the due date for payment of the provisional tax, or 14 days after
the date of issue of the notice for payment of the provisional tax.
Explore our range of services tailored to meet your needs:
· Annual individual tax return filing
· Hong Kong Salaries Tax calculation
· Applying for objections and appeals against tax assessment with the IRD
· Applying for holdover of provisional tax on tax assessment with the IRD
· Offshore claim / Time-appointment claim for foreigners and expatriates
· Rental value calculation / Rental reimbursement for Hong Kong Salaries Tax purposes and set-up of
· Contract of services vs. contract for service
