2.44M TAX RETURNS ISSUED

The Inland Revenue Department today sent out about 2.44 million tax returns for individuals.
 
Taxpayers should file their tax returns by June 3. For sole proprietors of unincorporated businesses, a three-month period is allowed and the filing deadline is August 2. Those filing via eTAX will have an automatic one-month extension.
 
At a press conference this afternoon, Commissioner of Inland Revenue Tam Tai-pang said profits tax, salaries tax and tax under personal assessment for 2023-24 will be reduced by 100%, subject to a ceiling of $3,000 per case.
 
From the year of assessment 2024-25, a two-tiered standard rates regime for salaries tax and tax under personal assessment will be implemented.
 
Additionally, starting from the year of assessment 2024-25, the deduction ceiling for home loan interest or domestic rents will be raised from $100,000 to $120,000 for eligible taxpayers of salaries tax and tax under personal assessment who are residing with children born on or after October 25, 2023.
 
Mr Tam also noted that starting from the year of assessment 2024-25, a deduction for expenses on assisted reproductive services will be provided under salaries tax and tax under personal assessment, subject to a ceiling of $100,000 per year. The Government will start the legislative process to give effect to the proposal.
 
Taxpayers are also reminded to stay alert to fraudulent emails purportedly issued by the department.
 
Mr Tam emphasised that the department will only inform taxpayers to log in to their eTAX Account to enquire about tax positions with the designated email address: e_alert@ird.gov.hk, and will not include hyperlinks in emails requesting taxpayers to provide their personal, bank account or credit card information.
 
On revenue collection, the department collected $342 billion for 2023-24, a decrease of $18.2 billion from the previous year. While profits tax collection dropped 2% year-on-year to $170.5 billion.
 
Given the Government’s various measures to boost the economy, Mr Tam said he expects an increase in the number of taxpayers which will also contribute to increased revenue collection in the coming year.
 
“This partly can be attributed to the low unemployment rate or underemployment rate and increase in the salary level of employees.
 
“This year we have also issued 40,000 more tax returns for individuals.
 
“There are various schemes operated by the Government to attract foreign talent to come to Hong Kong and there are already many such talents having been admitted to Hong Kong.
 
“So altogether, we would expect that the salaries tax revenue would see an increase of some 10% compared with last year.”
 
Mr Tam added that stamp duty collection is also expected to show an improvement.
 
“We understand that after the abolition of all the demand-side management measures for residential properties, there was a notable increase in property transactions.
 
“There have been a number of measures announced by the China Securities Regulatory Commission, which would help strengthen Hong Kong as an international financial centre and a capital market.”

---

PREVIOUSNEXT