Profits tax for the year of assessment 2023/24

Corporate tax returns, 未分類

Key points of salaries tax and tax under personal assessment:

  1. The profits tax reduction is capped at $3,000 per business.
  2. The salaries tax reduction is capped on a per individual basis, except $3,000 for a married person and his or her spouse who are jointly assessed.
  3. The tax reduction ceiling for personal assessment depends on the taxpayer’s circumstances:

– The maximum reduction for unmarried persons is calculated on a per-individual basis.

– If a married person elects to be assessed separately from his or her spouse, the tax reduction ceiling will be calculated on a per-individual basis.

– If the taxpayer and his/her spouse jointly elect for personal assessment assessment, the tax reduction is capped at $3,000 for both taxpayers.

  1. The reduction is not applicable to property tax, but individuals earning rental income may be eligible for personal assessment assessment if they are eligible.
  2. Taxpayers who are required to pay both salaries tax and profits tax will be entitled to tax reduction.
  3. If a taxpayer has business profits or rental income and elects to be assessed under personal assessment, the tax reduction will be calculated on the basis of personal assessment, which may be different from the case without personal assessment, and the final reduction will be determined on a case-by-case basis.
  4. To apply for personal assessment, taxpayers may complete Part 7 of their Tax Return – Individuals for the year of assessment 2023/24 (BIR60). Only those who have salaries income but no business profits and rental income are not required to elect for personal assessment assessment.
  5. The tax reduction will reduce the amount of tax payable by taxpayers for the year of assessment 2023/24. Taxpayers are only required to follow the usual procedures to complete their profits tax and tax return – individuals for the year of assessment 2023/24, which will be reduced by the Inland Revenue Department (IRD) upon the enactment of the relevant legislation. For tax bills issued before the enactment of the legislation, the Inland Revenue Department (IRD) will re-assess the tax after the enactment of the legislation, and taxpayers do not need to apply or make enquiries with the Inland Revenue Department (IRD).
  6. The tax reduction is only applicable to the final tax for the year of assessment 2023/24 and is not applicable to the provisional tax paid for that year. Taxpayers are still required to pay the provisional tax on time. The provisional tax paid will be used to settle the final tax for the year of assessment 2023/24 and the provisional tax for the year of assessment 2024/25. The remaining balance will be refunded if available.

https://www.gov.hk/tc/residents/taxes/salaries/personal/personalreduction/index.htm tax concessions for tax under personal assessment

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