The Inland Revenue Department (IRD) today (May 2) sent out about 2.44 million tax returns for individuals for the year of assessment 2023/24. The department reminded taxpayers to file their tax returns on time. The filing deadline for general cases is one month (by June 3) while for sole proprietors of unincorporated businesses, a three-month period is allowed (by August 2). Those filing via eTAX will be automatically granted a one-month extension (i.e. the deadline for general cases is July 3 and for sole proprietors is September 2).

     The Commissioner of Inland Revenue, Mr Tam Tai-pang, today hosted a press conference on the completion of tax returns for individuals for the year of assessment 2023/24 and the tax collection of 2023-24, and also introduced new features of e-filing of profits tax returns.

     Mr Tam referred to two tax measures proposed in the 2024-25 Budget, that is, the reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2023/24 by 100 per cent, subject to a ceiling of $3,000 per case, and implementing a two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the year of assessment 2024/25.

     In addition, the 2023 Policy Address announced that the deduction ceiling amounts for home loan interest and domestic rents will be raised for taxpayers who reside with their newborn children. Starting from the year of assessment 2024/25, the deduction ceiling for home loan interest or domestic rents will be raised from $100,000 to $120,000 for eligible taxpayers of salaries tax and tax under personal assessment who are residing with children born on or after October 25, 2023.

     The bill for implementing the above three tax measures is being scrutinised by the Legislative Council. Taxpayers only need to complete the tax returns for the year of assessment 2023/24 as usual. With the passage of the relevant legislation, the proposed tax reduction will be reflected in their assessments. In calculating the provisional salaries tax for the year of assessment 2024/25, the department will determine the amounts of home loan interest and domestic rents to be allowed based on the information provided by eligible taxpayers, and apply the two-tiered standard rates as appropriate.

     Mr Tam also briefly introduced another tax measure proposed in the 2023 Policy Address. Starting from the year of assessment 2024/25, a deduction for expenses on assisted reproductive services will be provided under salaries tax and tax under personal assessment, subject to a ceiling of $100,000 per year. The Government will start the legislative process to give effect to the proposal.

Source: Inland Revenue Department