Part 2 – FAQ on Tax Season in Hong Kong

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Hong Kong follows a schedular system of income tax. The Inland Revenue Ordinance (IRD) charges income from an office, an employment or a pension to salaries tax, profits from a trade or business to profits tax and income from real estate to property tax.

Individual Tax Returns (BIR60)
Tax Return – Individuals is directed at individuals, and enables you to report all your employment income (including income from office and pension), profits from sole proprietorship businesses, rental income from solely owned properties as well as claiming deductions and allowances in one return.

If you have previously been assessed as not liable to tax, you may not receive BIR60 annually. However, you have to notify the Inland Revenue Department (IRD) in writing when you become chargeable to tax not later than 4 months after the end of the basis period for the year of assessment concerned. You will receive an advice letter from the IRD to review your tax liabilities.

Property Tax Return (BIR57 or BIR58)
According to GOVHK, property tax returns are issued to joint owners, co-owners, corporations and bodies of persons. However, if you are the sole owner of the property, you should report your rental income in Tax Return – Individuals (BIR60). Meanwhile, take note of the two series of property tax return forms:

  • Property Tax Return – Property Jointly Owned or Co-owned by Individuals (BIR57)
  • Property Tax Return – Corporations and Bodies of Persons (BIR58)

Profits Tax Return (BIR51, BIR52 or BIR54)
For those who operate their businesses in the form of a corporation, partnership business; or if a non-resident person is chargeable to profits tax in your name, you should report the profits on profits tax returns. 

Your profits from the carrying on of sole proprietorship business should be reported in Tax Return – Individuals (BIR60).There are three series of profits tax return forms:

  • Profits Tax Return – Corporations (BIR51)
  • Profits Tax Return – Persons Other Than Corporations (BIR52)

Profits Tax Return – In Respect Of Non-Resident Persons (BIR54)

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Written by

Cheryl Toh

Last updated on

March 13th 2020, 12:26 pm

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