As a self-employed person, professional drivers are likewise required to perform the following duties:
The main reasons and a few points to explain:
– Taxi drivers are self-employed, and their income comes from driving passengers, which is in the nature of business income.
– Revenue, including fares paid by passengers and government subsidies, shall be taxed in accordance with the standard of general business income.
– Even if a taxi driver operates in his or her own name, he or she is taxed under the personal income tax regulations.
– Reasonable costs such as car rent, fuel, maintenance, etc. can be deducted when filing taxes.
– Relevant business records should be provided to prove taxable income when filing taxes.
– If you fail to file a tax return, you will face fines and recovery of tax payable once it is discovered by the tax authorities.
– Individual jurisdictions may have simplified ways to pay taxes, such as filing monthly or quarterly payroll returns.
Omnibus professional drivers must keep proper records of their income and expenses, and then declare their income and pay the tax due on time. Failure to do so may result in an offence under the Inland Revenue Ordinance, fines and even criminal prosecution.
Tax Liability for Self-Employed Persons https://www.gov.hk/tc/residents/taxes/profits/taxobligations.htm
