- 2023-03-20
- Categories: Blogs, Taxation/ Employer's return

Now that April is just around the corner, it’s time to keep an eye out for those green envelopes for filing tax returns. Even though Hong Kong is considered one of the leading tax havens due to its simple tax regime, many people still find filing tax returns dreadful and overwhelming, especially for first time tax filers. To help you get things started, here are some friendly tips you need to know about filing tax returns for the first time.
Why is it important to file tax returns?
Filing tax returns is a sign of being a responsible citizen. Besides, the Hong Kong government mandates that individuals who earn a specific amount of income must file tax returns to the Inland Revenue Department (IRD) — whether they’re local citizens or foreigners. Hong Kong’s tax system is based on a territorial concept, which means as long as you derive employment income (Salaries Tax), rental income (Property Tax) or business profits (Profits Tax) from Hong Kong, you are eligible to pay taxes and file your tax returns.
These tax returns usually have to be submitted within one month after the date of issue. Otherwise, you may be subject to a penalty, even prosecution, if you fail to file your tax return before the deadline. Click here to learn more about Hong Kong’s tax return last dates.
Forms and documents to be submitted for tax returns
Filing tax return — individuals is pretty straightforward. It includes the BIR60 form, the Appendix to BIR60, and the supplementary forms. Each of these forms serves the same purpose: reporting all your employment income, profits from business, deductions, and allowances for the year to the government.
Furthermore, if you own a property and/or a business in Hong Kong, you may also be required to file for a Property Tax Return (BIR57, BIR58, or BIR60) and a Profits Tax Return (BIR51, BIR52, or BIR54). If you are married and have elected a joint assessment with your spouse, make sure you also get his/her signature on your BIR60 form.
4 key tips for filing your tax returns and how service providers can help
1. Submit online
Not only is it easier and quicker to submit your tax return online, you can also get a one-month extension by simply filing through eTAX. Once you’ve submitted it online, the system will even pre-fill your personal data, and salaries income. It will then automatically calculate the maximum possible tax refund for you, saving you time and money in the future.
2. Check if you need to pay taxes at all
Not everyone will receive a tax return annually if the person has been previously assessed as not liable to tax. Depending on your income, you may not have to pay Salaries Tax or file your tax return if your total income does not exceed certain thresholds.
However, once you become chargeable to tax, you have to notify the IRD in writing within 4 months after the end of the yearly assessment. You will then receive an advice letter from the IRD verifying whether you need to pay taxes or not. If you receive BIR60 from the IRD, you must submit the form on time, even if you don’t have any income to report.
3. Check all your allowances
In addition to the basic allowance, individuals may qualify for family and dependent allowances if they live with their parents, siblings, or children. These allowances include married person’s allowance, child allowance, dependent brother or sister allowance, dependent parent and dependent grandparent allowance, single parent allowance, and disabled dependent allowance.
To see the full list of eligible deductions, you can refer to IRD’s Allowances, Deductions and Tax Rate Table.
4. Work with a tax professional
Filing tax returns is a daunting task. It will easily eat up hours of your time before you even realise it. That’s where hiring a tax professional will come in handy. Tax service providers are specifically paid and trained to keep up with the tax code and regulations. With their expertise, you can rest assured that you will get all the deductions and allowances that you are entitled to, as well as meet all deadlines to avoid penalties.
Whether you’re a self-employed individual, a working professional, or an entrepreneur with over 100k monthly income, if you want to protect your hard-earned money, hiring a tax professional will help you save time and money by taking advantage of tax schemes that you might not even be aware of.
How can FastLaneHR Help?
Filing taxes can often be overwhelming and confusing — even for seasoned tax payers! If you want to take control of your finances and ensure a stress-free tax season, it’s never a bad idea to use some professional help.
At FastLane HR, our team provides focused services on Individual Tax Filing and Compliance, so you can concentrate on your important business with peace of mind knowing your taxes are being handled properly.
If you would like to speak with our team, please don’t hesitate to contact us here.