In Hong Kong, as a society in which family care contributes enormously to daily life, tax relief mechanisms like the Dependent Parent and Grandparent Allowance can act as a powerful support system for employees who look after parents. For organizations, being familiar with supporting your staff with IR6071 submissions goes beyond being tax-compliant. It also helps your business convey that it cares about the welfare of families.
This guide outlines everything employers in Hong Kong and HR representatives should know concerning IR6071 and answers who can apply for it, as well as providing an easy stress-free solution via Fastlane HR.
What Is IR6071?
IR6071 form of Inland Revenue Department of Hong Kong is known as ‘Claim for Dependent Parent and Dependent Grandparent Allowance.
The act enables taxpayers to deduct tax relief for supporting either parents or grandparents through allowance payments.
In simpler terms: Employees who support financially the elder ones of their families can reduce taxes by filing IR6071.
For HR teams, helping employees understand IR6071 means promoting financial wellbeing and ensuring compliance with Hong Kong’s tax regulations.
The Importance of IR6071 to Employers and HR Personnel
Although it is done by an employee, it involves an important supporting role by employers.
Why it’s important to your company:
Increased Staff Satisfaction: Assisting employees in gaining rightful tax relief increases staff morale.
Compliance and Transparency: IR6071 knowledge lowers the possibilities of erroneous statements and queries from the IRD.
Supporting National Employees and Expats: Many of the expatriate team of workers of these organizations additionally have parents who rely upon them financially and who reside within Hong Kong.
Streamlined HR Processes: Partnering with experts like FastLane HR guarantees all claims are correctly controlled, from document series to IRD submission.
Eligibility Criteria: Who Can Claim IR6071
As in line with the IRD, an character can observe for the Dependent Parent or Grandparent Allowance on the subsequent situations:
- The dependent had ordinarily been resident in Hong Kong throughout the year.
- The dependent lived with the taxpayer throughout the year (or at least 6 months), without paying full board and lodging.
- Alternatively, the taxpayer or his/her spouse contributed at least HK$12,000 towards the maintenance of the dependent.
- The dependent must be 60 years of age or above or eligible for Disability Allowance.
For Elderly Residential Care Expenses Deduction:
- The taxpayer or his spouse incurred expenses on a recognized residential care home in Hong Kong.
- There can be only one claim either of allowance or of deduction in respect of each dependant.
Please note that experts at FastLane HR can confirm employee eligibility and assist in preparing supporting documentation for IRD.
The Process of Submitting IR6071 Filings
1: Download the Form
Employees can download IR6071 from the Inland Revenue Department website.
2: Fill in the Required Information
The form contains spaces for:
- Part of Claimaint’s details (employee info)
- Dependent’s information (name, HK ID card number, relationship,
- Type of claim (Allowance or Elderly Care Deduction)
- Declaration and signature
3: Attach to Tax Return
The accomplished IR6071 form should be attached to the Tax Return – Individuals form (BIR60) before it is submitted to the IRD.
4: The Role of Employer
Employers can help by
- Offering accurate work and income information upon request.
- Reminding staff of filing deadlines.
- Providing HR consultations or referrals to the FastLane HR tax service team.
5: Maintain Proper Records
The employee and the employer should retain a copy of IR6071 and supporting receipts such as those from contributions to care homes.
Common Mistakes to Avoid
The smallest mistakes may prevent the filing of claims. The list of possibilities includes:
- Taking allowance as well as deduction for the same dependent.
- Dependents who were not “ordinarily resident” in Hong
- Promissory or supporting documents that were
- Incorrect relationship or living arrangement information.
FastLane HR helps verify all information before submission to avoid costly mistakes or IRD follow-ups.
IR6071 FAQs for Hong Kong Employers and Employees
Only if the dependant is ordinarily resident in Hong Kong. Otherwise, the claim may not be accepted.
No. Just one taxpayer can file a return for the same tax-dependent within the same year.
No income requirement, but the depending individual must satisfy the residency and relationship tests.
However, IR6071 may still apply where the residency and contributions tests are satisfied for part of the year. FastLane HR can offer guidance on a case-by-case basis.
How FastLane HR Assists in the IR 6071 Process
The At FastLane HR, we offer end-to-end tax advisory services as well as tax submission services for employers and employees in Hong Kong. These services include:
- Accuracy and Eligibility of Claims of IR 6071.
- evading taxes.
- Passport Control.
- Liaising with the IRD for clarification or documentation.
- Providing tax compliance and payroll services. Whether you manage a local SME or a multinational team, FastLane HR ensures that both you and your employees claim all eligible tax benefits confidently.
Get in touch with us now to discover the value of our tax experts in easy IR6071 filing and improved employee support services.
Conclusion
The form IR6071 has played an important role in enabling Hong Kong employees to take care of their parents and grandparents while providing them with tax relief. From an employee perspective, it helps in enhancing the credibility of your company.
Together with the tax experts of FastLane HR, you can ensure that your IR6071 filing process for your whole team proceeds smoothly.