On April 1, 2021, the Hong Kong Inland Revenue Department began issuing profits tax, property tax, and employer’s returns for the year of assessment 2020-21.
This year’s Budget proposed a one-off reduction of 100 percent of profits tax, salaries tax, and tax under personal assessment for 2020-21, subject to a ceiling of HKD10,000. Once the relevant legislation has been enacted, the IRD will effect the tax reduction in this year’s tax bills.
A spokesperson for the IRD said that individuals with rental income can, if eligible, avail themselves of the reduction by electing personal assessment. They can make this choice when completing their 2020-21 tax returns for individuals.
Taxpayers and employers are generally required to file their tax returns within one month from the date of issue of the relevant returns. About 2.6 million tax returns for individuals will be issued on May 3.