Filing a tax return in Hong Kong is comparatively easy, but it is quite important to understand the steps for compliance with IRD. A step-by-step guide will be helpful in understanding ways to file your tax return in Hong Kong:
1. Obtain the Tax Return Form:
Hong Kong’s Inland Revenue Department normally issues tax return forms on the first working day of May in each year. If you cannot find this form, you can contact IRD for an application via their website or in person at their office. For individuals, it is called a BIR60.
2. Prepare Documents Needed:
- Now, get ready with all the necessary documents for the proper filling of your tax return form: your statements of employment income IR56B, income from dividend, house rentals, or other sources; receipts for deductibles, charitable donations, and self-education expenses. The next step is to fill in the tax return form.
- The Particulars of the BIR 60 form should be filled in, stating your personal particulars, total income earned, and total deductions that may be claimed. Deductible items may include MPF contributions and home loan interest. The form should be carefully checked before submission.
3. Filing of Tax Return:
You may submit your tax return by posting the completed form to the IRD, or by filing online using the eTax system, which can be accessed via the IRD’s website. Online filing is much quicker and confirms that your submission has been received immediately. The deadline for submission is usually one month from the date the form was issued.
4. Pay Taxes:
The IRD will review your return after you have filed it and send you a notice of tax assessment. The normal rule is that the tax is payable in two installments, one falling due in January, the other in April.
With these steps, an effective filing of Hong Kong tax return should be achievable and late-submission penalty thus avoided.