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Wednesday, Jun 29, 2022

Over 2.47mn of tax returns sent out as HK reports $378bn of revenue

Over 2.47mn of tax returns sent out as HK reports $378bn of revenue

The Inland Revenue Department on Wednesday reported a tax revenue of HK$378.5 billion in year 2021/22, marking an increase of 14 percent, or HK$47.7 billion, comparing to last year's numbers.
Profits tax took up the largest cut of the tax revenue at HK$167 billion, after it jumped by 23 percent, or HK$31.8 billion, from last year's HK$135.5 billion.

As for salaries tax, it rose by one percent, or HK$500 million to this year's HK$75.5 billion.

The department also sent out about 2.47 million tax returns for individuals, including 560,000 electronic tax returns and 1.91 million tax returns in paper forms.

Commissioner of Inland Revenue Tam Tai-pang reminded taxpayers to file their tax returns on time by July 2, while filing via eTAX will provide an automatic extension of one month with a deadline on August 2.

For sole proprietors of unincorporated businesses, a three-month period is allowed and the filing deadline is September 1. Those filing via eTAX will see the deadline extended to October 3.

Speaking at a press conference today, Tam added that profits tax, salaries tax and tax under personal assessment for the year 2021/22 will be waived by 100 percent as proposed by the government in the 2022/23 Budget.

He also told taxpayers to complete the tax returns as usual and the reduction will be reflected in the assessments.

The revenue chief continued that there is a newly added Part 10A in the tax returns in relation to the Financial Secretary's proposal to introduce a tax deduction for eligible domestic rent from the year 2022/23.

“Under the relevant bill that is being scrutinized by the Legislative Council, taxpayers liable to salaries tax or tax charged under personal assessment who do not own any domestic property can claim deduction for the rent paid by him/her or his/her spouse (who is not living apart from the taxpayer) as the tenant,” the government statement read.

The annual ceiling of the deduction is HK$100,000 and the measure will be implemented after the legislation completed.
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