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Top Tips For Filing Your Tax Return
iHR Operations Manager - Ada Lai

Filing your tax return is a job that simply has to be done. The following helpful advice should make the whole process easier.

Start Early

Don’t put off the job of preparing your tax return just because the deadlines seem a long way away.  Even if you do not have any income to report, you must complete, sign and file the form on time.  Unnecessary delay will only lead more tax problems!

Reduce Your Tax Burden

Make sure to keep abreast of the latest breaks, some of which specifically benefit to you.

1. Select Separate Individuals or Joint Assessment

If both you and your spouse have assessable income, each of you should declare the income and claim expenses and deduction in the tax returns.  The potential benefits of joint assessment is to reduce your overall tax liability, you can calculate the estimated tax liability and select the most advantageous option.

2. Select Personal Assessment

Personal assessment may reduce the tax payable by individual taxpayers who have to pay profits tax and/or property tax. If your only income is chargeable to salaries tax, you will not benefit from electing for personal assessment.

3. Deduction for Home Loan Interest

This deduction is granted to each person for 10 years of assessment, whether consecutively or not.  If the taxpayer is married for all or part of the assessable year and has elected joint assessment / personal assessment or has been nominated by his/her spouse to claim home loan interest deduction, his/her B.I.R. 60 should also be signed by his/her spouse.

4. Claim for Expense under Salaries Tax

Approved Charitable Donations
You can normally claim deductions for donations made to approved charitable organizations. However, not all payments you have made are deductible.

Expenses of Self-education
Expenses of Self-education (including tuition and the related examination fees) paid for a prescribed course of education may be deductible under salaries tax.

Contributions to a Mandatory Provident Fund Scheme or Recognized Occupational Retirement Scheme
You can claim deductions for mandatory contributions made to a mandatory provident fund scheme or contributions to a recognized occupational retirement scheme.  Any contribution exceeding 5% of your salary would be regarded as voluntary contributions to the MPF Scheme and not deductible for tax purpose, and the maximum deductions for mandatory contribution is HK$12,000. 

5. Claim for Allowances under Salaries Tax
In every year of assessment you are entitled to a basic allowance. You can also claim other allowances in respect of your dependent family members: 

  • Married person’s allowance
  • Child allowance
  • Dependent brother or dependent sister allowance
  • Dependent parent or dependent grandparent allowance
  • Single parent allowance
  • Disabled dependant allowance

Claim for deduction for Dependent parent or dependent grandparent, the following conditions must be satisfied before the deduction is granted:

  • The parent or grandparent is you or your spouse's parent or grandparent.
  • The parent or grandparent is 60 years old or above, unless he/she is entitled to claim an allowance under the Government’s Disability Allowance Scheme.
  • The parent or grandparent was receiving residential care in a residential care home in the year of assessment.
  • The expenses were paid to a residential care home or any person acting on its behalf.
  • The expenses were paid by you or your spouse in the year of assessment (net of any reimbursement by any person or organisation).
  • The residential care home is situated in Hong Kong and is licensed or exempted from licensing under the Residential Care Homes (Elderly Persons) Ordinance, or is a nursing home registered under the Hospitals, Nursing Homes and Maternity Homes Registration Ordinance.
  • Only one person can be granted the deduction for the same parent or grandparent for a year of assessment. Where, other than you, someone else is also entitled to claim the deduction and contribute to the payment of the residential care expenses, you must agree among yourselves on who will claim the deduction for that year of assessment. If you are unable to agree, no deduction will be allowed.

6. Apply For Full or Partial Exemption of Income under Salaries Tax
If you are an employee and your source of employment is in Hong Kong, your full income is chargeable to salaries tax even if some of your duties are performed outside of Hong Kong. However, you may claim exemption or relief on a year-by-year basis under certain circumstances.

Qualifying Conditions

Qualifying Conditions must be satisfied before all the deduction can be claimed and granted. 

Supporting Documents

When you file your tax return, you need not attach documents to support your claims. However, you should retain documentary evidence (such as receipts issued by the residential care home) for production to the IRD for verification when required.

Check Your Return Before You File It

Take a moment to stand back and look at your return. Does it make sense? Have you missed something out or put in an extra zero in a number?  Looking at the previous year entry for each box will help you avoid such mistakes.
We are experienced with handling tax issues with the IRD and confident to minimize your risk on filing a wrong tax return.
Our scope of services include:

  • Preparation Salaries Tax and filing a Tax Return
  • Calculating the estimated tax liability
  • Advising on the implications of HK profits tax on individuals, sole proprietors or partnerships and elect for Personal Assessment to reduce tax liability
  • Application for Certification of Resident Status Under the Arrangement with the Mainland of China For the Avoidance of Double Taxation on Income (Individuals)
  • Assist customers to reply any inquiries issued by the IRD
  • Act as the tax representative of our customers on objection of tax assessments
  • Application for Holdover of Provisional Tax
Our fee will be charged according to situation of each individual case. If you would like to know more about the above services, please contact us immediately.