The last thing salary/wage earners want to face every year is the tax return sent by the Inland Revenue Department, commonly known as the “green bomb”. When filing taxes, many people want to know more about tax-free allowances. Which items are you eligible for? How much tax-free is there? Taxpayers who want to “save tax” can read this article.
List of “Tax allowance” for the year of assessment 2021/22
1) Basic Allowance ($132,000)
The basic non-claimable allowance cannot be enjoyed together with the “Married Person Allowance” for the relevant year.
2) Married Person Allowance ($264,000)
If you are married during the year of assessment and you are not separated from your spouse, or you are separated from your spouse but have financial support for each other, and your spouse agrees to file a joint tax return on your tax return, you can claim the Married Person Allowance.
3) Child allowance (per child)
• 1st to 9th children ($120,000)
• An additional increase in the child allowance ($120,000) for each year of assessment in which the child is born
4) Dependent sibling allowance ($37,500)
During the year of assessment, if the unmarried siblings supported by your spouse are under the age of 18; or under the age of 25 but receiving full-time education in an educational institution; or over the age of 18 but incapacitated due to physical or mental problems If you work, you can claim the Dependent Brother or Sister Allowance.
5) Dependent parent and dependent grandparent or maternal grandparent allowance (each)
• If aged 55 or older but under 60 $25,000
• If aged 60 or over $50,000
• Under the age of 60 but eligible to claim an allowance of $50,000 under the Government Disability Allowance Scheme
During the current year, if the taxpayer or his/her spouse (not living apart from you) is a dependent parent/grandparent/grandparent who normally lives in Hong Kong; has reached the age of 55, or is eligible to claim an allowance under the Government Disability Allowance Scheme; and live with you for at least 6 consecutive months at no full expense, or you/your spouse contribute not less than $12,000 per year to support the parent/grandparent/grandparent.
You are also entitled to the Dependent Parent and Dependent Grandparent/Grandparent Additional Allowance if the dependent parent/grandparent/grandparent has lived with you continuously throughout the year without paying full expenses.
6) Single Parent Allowance ($132,000)
During the year of assessment, if the taxpayer is not married (married, divorced, widowed, or living apart from the spouse in that year cannot claim the single parent allowance, it will be subject to the next year of assessment), because the responsibility The single parent allowance can be claimed for the daily life of supporting, caring for and guardianship of children.
7) Disabled Dependent Allowance ($75,000), Disabled Person Allowance ($75,000)
During the year of assessment, if the taxpayer supports a dependent who is eligible to receive an allowance under the Disability Allowance Scheme of the Hong Kong Government, you can claim the disabled dependent allowance. Dependents are spouses or children, or spouse’s parents, grandparents, maternal grandparents, or siblings.
The last thing to remind us is that to avoid double application of tax allowances for families, such as siblings claiming the “Dependent Parents, Grandparents and Grandparents Tax Allowance” repeatedly, it is best to discuss with family members before filing tax returns and to have a consensus on who should declare these tax exemptions Forehead.
The above information is for reference only. If you have any questions about tax returns, allowances, or accounting, we welcome your inquiries.