The tax exemption amount for married persons in 2025/26 is HK$264,000, which will increase to HK$290,000 starting from 2026/27, and cannot be combined with the basic exemption amount. Joint assessment is suitable when one party's income is significantly lower; when both parties have high incomes, separate assessment is usually more tax-efficient. Joint assessment must be reapplied for each year. Summary: The tax exemption amount for married persons in 2025/26 is HK$264,000; it will be adjusted to HK$290,000 starting from 2026/27. The tax exemption amount for married persons cannot be combined with the basic exemption amount, and one must choose one of the two. Joint assessment does not necessarily save tax…

Self-employed individuals report salaries tax or profits tax based on whether they have an employment contract; if both apply, they must report both. Business-related expenses and mandatory MPF contributions (capped at HK$18,000) are tax-deductible. Even if income is below the exemption amount or there are business losses, reporting must still be done on time. Summary: Self-employed individuals report salaries tax (employed) or profits tax (self-employed) depending on whether they have an employment contract; if both apply, they must report both. Even if income is below the exemption amount or there are business losses, reporting must still be done on time, otherwise it may be considered tax evasion. Business-related expenses (rent, equipment, advertising, etc.) and mandatory MPF contributions can be…

In addition to paying tax, you have to submit the annual return NAR1 every year. What is the annual return? What is NAR1? What information do I need to submit in NAR1? What is the purpose of NAR1? This article will provide you with a detailed introduction to the definition, content and role of the annual return, as well as the latest 2025 nar1 submission guidelines. What is Annual Return? Annual Return Annual Return is a form of NAR1 that must be submitted by local private limited companies registered in Hong Kong every year, while Hong Kong unlimited companies are not required to submit an annual return (they only need to submit the business registration fee and ...

Provisional tax is the tax amount estimated by the tax authority for the next year based on the income of the previous year, and the government's one-time relief does not apply to provisional tax. If the expected income for the next year decreases by more than 10%, or if there are new exemption amounts not reflected in the tax bill, an IR1121 application for deferral can be submitted 28 days before the tax payment deadline. Summary: Provisional tax is the estimated tax amount collected in advance from taxpayers by the tax authority based on the income of the previous assessment year, applicable to salaries tax, profits tax, and property tax. Calculation method: Based on the tax amount payable from the previous year, estimated without deducting the government's one-time relief in advance. One-time relief for the 2025/26 assessment year…

Wan Chai Inland Revenue Department moves to Kai Tak Tax Centre The Hong Kong Wan Chai Inland Revenue Department has been relocating to a new building in phases from December 2022 to May 2023. If you need to go to the tax building for various business matters, you need to pay attention! As of May 15, 2023, the original tax building in Wan Chai has completed its relocation to the Kai Tak Tax Building. The tax centre is located next to the Industrial and Trade Building, near San Po Kong and Kai Tak Station, and is a government office building in the Kai Tak Development Area, covering an area of approximately 9,832 square meters and standing 19 stories tall. The new design incorporates many environmentally friendly and energy-saving facilities and green spaces, and also provides multiple public...

Local limited companies are required to submit their annual return to the Companies Registry within 42 days from the anniversary of their incorporation. It turns out that different types of companies have different submission timelines. There are also many points to note between the different submission methods, and late submissions can incur a maximum fine of HKD $3,480. This article will share four important points to note when submitting the annual return.