Tax Returns Issued

The Inland Revenue Department today issued 190,000 profits tax returns, 130,000 property tax returns and 310,000 employer's returns for the 2018-19 year.

About 2.68 million tax returns for individuals will be issued on May 2.

In this year's Budget, the Financial Secretary proposed a one-off reduction of 75% of profits tax, salaries tax and tax under personal assessment for 2018-19, subject to a ceiling of $20,000.

The reduction will be incorporated into this year's tax bills once the relevant legislation is enacted.

Under a two-tiered profits tax rates system implemented from the 2018-19 year, tax for the first $2 million of profits of corporations and unincorporated businesses will be lowered to 8.25% and 7.5% respectively.

Profits above that amount will be subject to the rates of 16.5% and 15%.

Taxpayers have to state whether they are chargeable at the two-tiered rates.

For those with any connected entities, they have to provide a complete list of connected entities carrying on a trade, profession or business in Hong Kong in the specified supplementary form.

The department reminds taxpayers to complete their tax returns properly and file them on time and also encourages them to use the eTAX system.