Tax News: Waiver of Surcharges for Payment of Tax by Instalments for Businesses and Individuals in Need

The Inland Revenue Department (IRD) has announced that it would waive the surcharges for payment of tax by instalments for the year of assessment 2020/21 for taxpayers who encounter financial difficulties in settling their tax bills on time.  Taxpayers who would like to settle the 2020/21 tax payment by instalment may file an application before the tax payment due dates as indicated in the 2020/21 tax demand notes.  For taxpayers who successfully obtained the IRD’s approval for instalment settlement of the demand notes for Salaries Tax, Profits Tax and Personal Assessment for 2020/21 issued between May 2021 and May 2022, no surcharge would be imposed for a maximum period of one year counted from the respective due dates of the demand notes, provided that the instalment plans are duly adhered to.

In addition, the IRD has extended the applicability of the previous support measures to waive the surcharge for instalment settlement of demand notes for the years of assessment 2018/19 (for tax demand note issued from December 2019 to May 2022) and 2019/20 (for tax demand note issued from August 2020 to May 2022).

Meanwhile, the above support measure is not applicable to individuals who have to settle their tax liabilities before departing Hong Kong and taxpayers paying property tax.

If you have any enquires or would like to apply for the payment of tax by instalments, please feel free to contact us.

Marzio Morgante
Chartered Accountant, LL.M.
Managing Partner
Tel: (852) 3102 1995

Kei Lam
Senior Tax Manager
Tel: (852) 3102 1995

Rooms 501-2, Wilson House
19-27 Wyndham Street
Central, Hong Kong

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