2022 tax return: MPF contributions are automatically tax-deductible? Tax Return FAQ

Tax filing season is here again, and every wage earner may have to face the tax bill sent by the tax bureau, commonly known as the “green bomb”. Before filing a tax return, many people want to know more about tax filing. The following comprehensive frequently asked questions can help you who are troubled by your tax bill. Please refer to this article for more tax filing information.

Tax deduction items tax declaration? The easiest way to fill in the MPF mandatory contribution tax deduction

All tax deduction items are basically required to be declared. Many people think that mandatory contributions to MPF are reported by employers, but in fact, the Inland Revenue Department will not deduct employees’ taxes due to this. On the contrary, the MPF mandatory contribution tax deduction of up to HK$18,000 must be reported by the employee, otherwise, this deduction right will be deemed waived.

Furthermore, cash donations of not less than HK$100 to recognized charities are tax-deductible as long as you have retained receipts; and you have enrolled in work-related courses organized by qualified institutions, and the fees and examination fees are acceptable. tax-deductible.

In addition, taxpayers should also pay attention to the “three tax-deductible treasures” newly added in recent years, including Qualified Deferred Annuity Policy (QDAP), MPF Tax-deductible Voluntary Contribution (TVC), and Voluntary Health Insurance Scheme (VHIS).

Is there a big difference between a physical tax return and an online tax return?

Let’s talk about the entity tax return first. The taxpayer must complete the tax return within 1 month from the date of issuance of the tax return, in which much information of the “Individual Tax Return (BIR60)” must be filled in. Remember to put enough postage on it so you don’t get it back and re-send it, even past the deadline.

On the contrary, the period for filing tax returns on the online “eTax” platform is automatically extended by one month, which is relatively convenient. At the same time, you can avoid penalties for late filing of tax returns, as well as avoid prosecution by the IRS. You can also use the platform to check at any time whether the tax return has not been submitted, the tax that has not been paid, you can also estimate the tax payment in real-time, etc., and you can also update your personal information through the platform.

What are the consequences of delaying tax filing?

Try not to file your tax return late, as offenders can be fined HK$10,000 at any time and even prosecuted. Furthermore, because you cannot file your tax returns on time, which hinders the accurate tax assessment by the Inland Revenue Department, you are more likely to pay more tax, and you will lose the right to claim the tax exemption and tax deduction items, leaving only the basic tax exemption. The unilateral issue of the assessment results, resulted in the payment of additional tax.

What can I do if I fail to fill in the tax information?

All missing tax declaration information, such as allowances, tax deduction items, etc., can be claimed to the bureau within a specified time. If a taxpayer files a tax return in a physical tax return, he or she can fill in and submit the corresponding form according to the missing items; once you file a tax return online, you can go to the “Supplementary Information” in your eTAX account to fill in the missing items.

What supporting documents do I need to file a tax return for tax exemption and a tax deduction?