The Inland Revenue Department recently announced on the automatic deadline extension for the payment of Salaries Tax, Tax under Personal Assessment and Profits Tax for the year of assessment 2018/19. This lies in a series of relief measures by Hong Kong IRD to support taxpayers to reduce their financial and cash flow burden due to the COVID-19 pandemic.
How long is the extension?
Highlights of the Hong Kong IRD’s announcement are as below:
- For taxpayers whose Salaries Tax, Personal Assessment and Profits Tax for the year of assessment 2018/19 will be falling due between April to June 2020, that settlement deadline will be automatically extended for three months.
- If the taxpayer has already made the payment for the first instalment as specified on the demand note, the deadline for the second payment will also enjoy an automatic three-month extension since the due date of the second instalment.
- There is no requirement for the taxpayer to send any application for the above relief.
Who is applicable for the extension?
All taxpayers are applicable for the automatic three-month extension, except certain businesses and individuals as in the following cases:
- Taxpayers having to settle their tax liabilities before departing Hong Kong;
- Taxpayers paying property tax;
- Taxpayers already getting approval to pay their tax by monthly instalments;
To read full announcement from IRD, please click here.
Should you have any question regarding tax payment deadlines for Hong Kong business, do not hesitate to contact us!