IRD issues profits tax, property tax and employer’s returns for 2022-23
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The Inland Revenue Department today (April 3) issued about 220 000 profits tax returns, 120 000 property tax returns and 310 000 employer’s returns for the year of assessment 2022-23. About 2.4 million of tax returns for individuals will be issued on May 2. Taxpayers and employers are generally required to file their returns within one month from the date of issue of the relevant returns. For cases with tax representatives appointed, the deadlines for filing returns are set out in the Block Extension Letter posted on the department’s website.
Members of the public can visit the department’s website (www.ird.gov.hk) for common questions and answers on how to complete tax returns. The department has gradually enhanced the functions of electronic tax filing to promote tax digitalisation and to enhance the efficiency, reliability and accuracy of return filing. Taxpayers are encouraged to file their tax returns through eTAX electronic services, details of which can be found on the webpage (www.gov.hk/en/residents/taxes/etax/services/index.htm) (Note). Guidance on electronic filing of employer’s returns is also available on the department’s website (www.ird.gov.hk/eng/tax/err.htm). The eTAX services permit individuals to use the Government’s “iAM Smart” digital services to log in and sign the tax returns (signing is only applicable to holders of “iAM Smart” accounts with digital signing function). For information about the “iAM Smart” services, please visit the website at (www.iamsmart.gov.hk).
Starting from this year, all corporations and businesses, regardless of the amount of their gross income and the mode of return filing, must submit their profits tax returns together with all supporting documents (including financial statements and profits tax computations). Further, all relevant supplementary forms and other forms required to be furnished with the returns must be e-filed under eTAX. If a taxpayer does not choose to e-file the return, the taxpayer has to print and sign a paper Control List for the supplementary forms and/or other forms e-filed and then furnish the signed Control List together with the return and supporting documents in paper form.
Enhanced e-filing services for profits tax returns were launched with the following new features and filing requirements:
* All corporations and businesses can e-file profits tax returns under eTAX for the year of assessment 2022-23. They only need to fill in simplified e-returns online, upload completed required forms and the supporting documents prepared in inline eXtensible Business Reporting Language (“iXBRL”) format, e-sign and submit the returns through eTAX.
* Semi-electronic filing mode is also available under eTAX. A taxpayer can upload the completed required forms and the supporting documents prepared in iXBRL format through eTAX, print a simplified tax return generated by eTAX for signature and submission in paper form.
* For full electronic filing or semi-electronic filing of profits tax returns, the taxpayer is required to submit the supporting documents (i.e. financial statements and profits tax computations) in iXBRL format. To facilitate corporations and businesses in preparing the required iXBRL data files, IRD iXBRL Data Preparation Tools are available for download on the department’s website (www.ird.gov.hk/ixbrl) free of charge.
The department reminds taxpayers and employers to pay sufficient postage for returns to be posted to the department to ensure timely delivery. Underpaid mail items will not be accepted by the department. Please note that Hongkong Post has adjusted the postage rates with effect from September 26, 2022. The postage for local letters weighing 30 grams or less has been adjusted from $2 to $2.2. Postage rates can be found on Hongkong Post’s website at www.hongkongpost.hk.
Note: All eTAX online services will be suspended from 9pm on April 6 to 9pm on April 9 for migration of the Inland Revenue Department’s systems to a cloud platform.