To file personal income tax in Hong Kong, you need to follow these steps:
1. Determine your tax residency status: Hong Kong follows a territorial basis of taxation, which means that only income derived from or arising in Hong Kong is subject to tax. Determine if you are a Hong Kong tax resident or a non-resident based on the Inland Revenue Ordinance’s guidelines.
2. Collect necessary documents: Gather all relevant documents, including your Hong Kong Identity Card, employment income statements (such as salary slips or Forms IR56B issued by your employer), investment income statements (such as dividend vouchers or interest statements), rental income receipts, and any other supporting documents related to your income, deductions, or allowances.
3. Understand tax allowances and deductions: Familiarize yourself with the available tax allowances and deductions, such as personal allowances, dependent parent allowances, home loan interest deductions, charitable donations deductions, and more. These can help reduce your taxable income.
4. Complete the tax return form: Obtain the tax return form (BIR60) from the Inland Revenue Department (IRD) website or visit any IRD office to collect a physical copy. Fill in the required information, including personal particulars, income details, deductions, and allowances. If you have any questions or need assistance, you can contact the IRD helpline or seek advice from a tax professional.
5. Calculate your tax liability: Use the tax tables or tax calculators provided by the IRD to calculate your tax liability based on the progressive tax rates. Ensure that you correctly include all sources of income and apply any applicable deductions or allowances.
6. File the tax return: Once you have completed the tax return form and calculated your tax liability, you can submit your tax return to the IRD. You have the option to file electronically through the eTAX website or by mailing the physical form to the IRD. The deadline for filing tax returns in Hong Kong is typically on or before April 30th of the year following the tax year.
7. Settle the tax payment: After filing your tax return, the IRD will issue an assessment notice specifying the amount of tax payable. Make the payment by the due date indicated on the notice. You can pay through various methods, including online banking, ATM, or at designated payment locations.
Remember to keep copies of all relevant documents and receipts for future reference or in case of an audit.
It’s worth noting that tax regulations and procedures may change, so it’s advisable to consult the latest guidelines from the Inland Revenue Department or seek assistance from Hong Kong Company Formation to ensure compliance with current requirements.