FAQ – Individual Tax Compliance
You might have income from employment and rental income from solely owned property last year. Besides, it may be business income from sole proprietorship business last. Chances are you have not given any notification regarding the permanent cessation of such income.
Tax Returns are issued once every few years to individuals previously found to be exempt from tax (e.g. owner self-occupied properties). This is to ascertain if their tax exemption status still stands.
Yes. You may claim exemption of salaries income under Double Taxation Arrangements between Hong Kong and other jurisdictions.
Note : Section 8(1A)(c) of the Inland Revenue Ordinance.
Instead of sending any documentary evidence, you should keep them for 6 years for verification by the assessor when required.
You will be wholly exempted for Hong Kong salaries tax with 2 conditions. First, your employer is a Hong Kong company. Second, you rendered services in Hong Kong only during visits not exceeding a total of 60 days during the year.
If you were present in Hong Kong for more than 60 days and had rendered services in Hong Kong during the year, your income is wholly taxable. If you have paid Individual Income Tax in the Mainland on the income for services rendered in Mainland, you can claim tax credit under current regulation.
Note : Section 50 of the Inland Revenue Ordinance.
In general, if an individual’s assessable income is lower than entitled allowances and deductions, Joint Assessment will be advantageous. Nonetheless, some deductions (e.g. of mortgage interest from rent income) are applicable only to Personal Assessment.
The purpose of allowances/deductions under both Joint Assessment and Personal Assessment is to provide tax relief. If your choice is actually disadvantageous, Inland Revenue Department will inform you and give the appropriate relief. You have no need to withdraw or re-submit your tax return.
You may make an objection in writing stating the grounds of objection within one month after the issue date of the notice of assessment. If it is due to errors or omissions in the your submitted return, you may write to the Assessor to amend the information.