Waiver Request of Late Payment Interest
This is a waiver request of late payment interest. In this letter, the sender lodges a request to waive the interest because they went out of town during the payment period.
Personal
Reply to HKIRD’s enquiry on Disposal of Property within 6-12 Months of Acquisition
This is a reply to HKIRD’s enquiry on the disposal of property within 6-12 months of acquisition. In this letter, the sender explains the disposal was made due to personal reasons.
Request to Revise Tax Assessment
This is a request to revise the tax assessment. In this letter, the sender makes the request and explains the reason for that.
Time Apportionment Application
This is a Time Apportionment Application. In this letter, the sender provides the income and attachment of the time apportionment calculation for their accrued income.
The disposed property was purchased many years ago. The value has appreciated a lot. Should I be worried the IRD may impose tax on it?
While it is not clearly stated by the IRD, holding a property for a very long time is generally seen as strong support of not a speculative transaction. However, the length of holding period is one of the facts for IRD to determine if a business has been carried on. You should be prepared in … Read more
What is the Home Loan Interest Deduction?
Taxpayers can claim deductions for home loan interest (HLI) under salaries tax and personal assessment. The taxpayer has to satisfy the following conditions before a deduction can be granted: you are the owner of the dwelling (either as a sole owner, a joint tenant or a tenant in common) and ownership is by reference to … Read more
What are elderly residential care expenses?
Elderly residential care expenses are the fees charged by the residential care home. If the fees charged are fully met by the Comprehensive Social Security Assistance Scheme Allowance (CSSA), the taxpayer is not entitled to a deduction for elderly residential care expenses because s/he has not paid for such expenses. However, he/she may claim dependent … Read more
What types of personal allowances are available?
There are 7 types of personal allowances that are available: Married Person’s Allowance Child Allowance Dependent Brother or Dependent Sister Allowance Dependent Parent and Dependent Grandparent Allowance Single Parent Allowance Disabled Dependent Allowance Personal Disability Allowance Reference: https://www.ird.gov.hk/eng/faq/all.htm
Is it always beneficial to claim PA if I and my spouse have rental or business income? What if we elected PA but turned out to be disadvantageous to us, can we revert that election?
Depending on income level and personal allowances, PA is a possible way to save tax. In case you have elected PA but it will result in more tax to pay, your income will be automatically assessed as if you do not elect PA. Reference: https://www.ird.gov.hk/eng/faq/pa.htm
I have salary income and let out a jointly owned HK property, where should I report the rental income?
Part 3 of the Individual tax return (BIR 60) caters for SOLELY-OWNED properties only. You should use a Property tax return (BIR 57) to return jointly-owned property income. In the case of company-owned property income, the form is BIR 58. Reference: https://www.ird.gov.hk/eng/faq/pa.htm