Extension of Hong Kong Tax Payment Deadlines by Three Months
The Hong Kong Government has announced that there will be an extension of three months for tax payment deadlines. This will apply to salaries tax, personal assessment and profits tax for the year of assessment 2018/19 which fall between April to June of this year. The deadline extension is automatic and will require no application from taxpayers.
This relief measure comes as a response to alleviate financial burdens due to COVID-19 and ease cash flow for businesses. The pandemic has prompted governments around the world to impose nation-wide lockdowns that have affected business operations while airports have been restricted to little or no flights at all.
Details of Extension
The Department of Inland Revenue also stated that if taxpayers have already paid the first payment in compliance with the demand note for the assessment year 2018/19, the deadline for the second payment would be automatically extended by three months from the date specified. 2020 deadlines for tax payments, lodgement of objections, holdover applications, submission of tax returns and information that fall from March 23 to May 2 are automatically extended to May 4.
The extension of tax payment deadlines applies for both individuals and companies. However, it is important to note that this relief measure does not extend to taxpayers who are expected to settle their tax liabilities before leaving Hong Kong, as well as to taxpayers paying property tax and to taxpayers who have been allowed to pay their taxes by installments.
If an extended deadline falls on Saturday, Sunday or a public holiday, the deadline will be brought forward to the next working day. The Department has also encouraged the public to use submit tax payments or handle tax matters online through their electronic services or send their documents to the department by post.
Conditional Waiver of Surcharges
The Inland Revenue Department has also announced a conditional waiver of surcharges for installment settlement of demand notes for the Year of Assessment 2018/19. This is not automatic and taxpayers will need to apply for it.
Only Taxpayers who encounter financial difficulties in settling their tax bills on time can apply for payment of tax by installments before the due date of the tax demand notes. The conditional waiver is only applicable to Salaries Tax, Profits Tax and Personal Assessment demand notes. Applicants will need to apply by filling out a form that can be downloaded from the Department’s website.