The Inland Revenue Department (IRD) sent out about 2.47 million tax returns for individuals today (June 1). The Commissioner of Inland Revenue, Mr Tam Tai-pang, reminded taxpayers to file their tax returns on time by July 2.
For sole proprietors of unincorporated businesses, a three-month period is allowed and the filing deadline is September 1. Filing via eTAX will provide an automatic extension of one month (i.e. the deadline for general cases is August 2 and the deadline for sole proprietors is October 3).
Mr Tam today hosted a press conference on the completion of tax returns for individuals for the year of assessment 2021/22 and the tax collection of 2021-22. He said that the Revenue (Tax Concessions) Bill 2022 was passed by the Legislative Council on April 6, giving effect to the tax concessions proposed by the Government in the 2022-23 Budget, reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2021/22 by 100 per cent, subject to a ceiling of $10,000 per case. Taxpayers should complete the tax returns for the year of assessment 2021/22 as usual and the reduction will be reflected in the assessments.
Mr Tam also highlighted the newly added Part 10A in the tax returns in relation to the Financial Secretary’s proposal to introduce a tax deduction for eligible domestic rent from the year of assessment 2022/23. Under the relevant bill that is being scrutinised by the Legislative Council, taxpayers liable to salaries tax or tax charged under personal assessment who do not own any domestic property can claim deduction for the rent paid by him/her or his/her spouse (who is not living apart from the taxpayer) as the tenant. The annual ceiling of the deduction is $100,000. This measure can only be implemented after completion of the relevant legislative process.
Taxpayers can provide information about the domestic rent they expect to pay in relation to the year of assessment 2022/23 in Part 10A of the tax returns so that the IRD can, upon the passage of the bill, consider the deduction as appropriate when computing the 2022/23 provisional salaries tax. Details of the tax deduction for domestic rent can be found on the department’s webpage at www.ird.gov.hk/eng/tax/drd.htm.
Mr Tam also encouraged taxpayers to file their returns through eTAX, which offers an easy, secure and environmentally friendly online service for filing tax returns, as well as can ensure tax returns are filed in a timely manner to the IRD. He reminded taxpayers to pay sufficient postage if they choose to send the returns by post.
Taxpayers may visit the IRD’s website to read the material under “e-Seminars” (www.ird.gov.hk/eng/tax/esem_ctr.htm) if they have questions on completing their tax returns. They may also raise their questions in the “Q&A Corner” and the IRD will answer the enquiries. From today to July 2, except on Sundays and public holidays, the IRD will deploy additional staff to answer the telephone enquiries hotline 187 8022 and extend the service hours up to 7pm on weekdays, and from 9am to 1pm on Saturdays.
On revenue collection, Mr Tam said that $378.5 billion was collected by the IRD during the financial year 2021-22 (please see Annex 1 for detailed statistics), an increase of $47.7 billion compared with the previous year’s figure. The breakdown is as follows:
2021-22 revenue collection by the IRD
|Property Tax &|
|Total Earnings &|
|Business Registration Fees||57||73||-22%|
|Total Revenue Collected||378,516||330,820||+14%|