HK IRD Issues Tax Returns For 2007-08

by Mary Swire, Tax-News.com, Hong Kong

01 April 2008

Hong Kong's Inland Revenue Department on Tuesday issued an estimated 160,000 profits tax returns, 100,000 property tax returns and 300,000 employer’s returns for the year 2007-08.

Additionally, around 1.97 million tax returns for individuals will be issued on May 2.

In this year’s Budget, the Financial Secretary proposed a 75% reduction of earnings and profits tax in 2007-08, subject to a ceiling of $25,000 per case.

“Taxpayers will, as usual, file their profits tax returns and property tax returns for 2007-08 which are issued today. Upon enactment of the relevant legislation, the Inland Revenue Department will make effective the reduction in the final assessment for 2007-08,” a spokesman for the department said on Tuesday.

According to proposals in this year’s Budget, individuals with rental and/or business income can enjoy tax reductions whether or not they elect personal assessment.

However, the amount of the reduction they will get might be different under personal assessment. The exact position will need to be evaluated case by case.

Individuals having business and rental income and eligible for personal assessment may make such election in their 2007-08 tax returns. The department stated that it will check if the personal assessment election will reduce the amount of tax payable in each case, and assess each taxpayer to his advantage.

The spokesman said that eTAX Account holders could, from Tuesday, e-file property tax returns for jointly owned properties through their eTAX Account.

He also added that eTAX, the new gateway to the department’s electronic services, offered the account holders a wide range of personalised online services including return filing, receipt of notices of assessment, tax payment, update of personal particulars and checking of tax position.

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