What to know about filing tax returns in 2023: When to file? Calculation of Salaries Tax? Allowances / Deductions

What to know about filing tax returns in 2023: When to file? Calculation of Salaries Tax? Allowances / Deductions

Tax filing season is here again, and every wage earner may have to face the tax bill sent by the Inland Revenue Department (IRD), which is commonly known as the “Green Bomb”.

The first thing you need to do is to get your hands on some of the most popular products and services available in the market.

In every year of assessment, that is, the 12-month period from April 1 each year to March 31 next year, all the actual income may be subject to salaries tax. Assuming that you start working on a certain date in the year of assessment, you should file your salaries tax return based on your income from that date to March 31 next year.

The actual taxpayers will have to pay the first installment in January and the second installment in April,louis vuitton outlet.

The first installment is due in January, and the second installment is due in April. 2023 Tax Returns丨Not Received?

If you haven’t received your 2022/23 tax return, you can check with the Inland Revenue Department:

Call 187 8022 and ask if the tax return for that year has been issued;

Visit our Central Enquiry Unit on the ground floor of the Inland Revenue Centre, 5 Co-ordinating Road, Kai Tak, Kowloon, Hong Kong during office hours to obtain a copy of the tax return in person.

Log on to the “Tax Position” section of your eTAX account for 24/7 enquiry to check if there are still outstanding tax returns.

2023 Tax Returns丨Extension of Tax Payment Deadline?

Citizens who have received their tax returns must file them on or before June 2nd. However, those who are running a sole proprietorship business have a longer filing deadline, i.e. to file their tax return on or before August 2nd. If you choose to file your tax return online, you will automatically receive a one-month extension. The deadline for the general public will be extended to July 3, while the deadline for sole proprietors will be extended to September 2.

2023 Tax Return 丨How to Calculate Salaries Tax?

The calculation of salaries tax is very simple. In the year of assessment, income is calculated in two ways, whichever is lower.

1) Real amount of taxable income: Gross income – Gross deductions – Gross allowances

2) Net Income: Gross Income – Deductions

2023 Tax Returns丨How much annual salary is subject to salaries tax?

As long as your annual salary/income for the year of assessment does not exceed the basic allowance of HK$132,000, you basically do not need to pay tax. However, if you still receive a tax return from the Inland Revenue Department, you still need to fill in the information and return it on time to notify your income.

2023 Tax Returns丨Tax Allowances

The following are the tax allowances calculated by the Inland Revenue Department for the year 2023/24:

Basic Allowance $132,000

Married Person’s Allowance $264,000

Single Parent Allowance $132,000

Disabled Person’s Allowance $75,000

Disabled Dependant’s Allowance (per person) $75,000

Child Allowance: 1st to 9th child (per child) $130,000

An additional $130,000 is added to the child allowance for the year of assessment in which each child is born.

Dependent Parent and Dependent Grandparent Allowances (per child):

(1) Parents/grandparents aged 60 or above or eligible to claim an allowance under the Government’s Disability Allowance Scheme $50,000

(2) Parent/grandparent aged 55 or above but below 60 $25,000

Additional Dependent Parent and Dependent Grandparent Allowances:

(1) Parent/grandparent aged 60 or above or eligible to claim an allowance under the Government’s Disability Allowance Scheme $50,000

(2) Parent/grandparent aged 55 or above but below 60 $25,000

Dependent Brother/Sister Allowance (per person) $37,500

2023 Tax Return 丨 Deductions

The following are the deductions and maximum deductions for the year 2023/24:

Expenses for self-education $100,000

Elderly residential care expenses $100,000

Home loan interest $100,000

Mandatory contributions to recognized retirement schemes $18,000

Eligible premiums paid under the Voluntary Health Insurance Scheme policy (per insured person) $8,000

Eligible annuity premiums and tax deductible MPF voluntary contributions $60,000

Residential Rent Deduction $100,000

Approved Charitable Donation 35%

2023 Tax Return丨If you are a first-time taxpayer?

If you are a first-time entrant to the society and join a company as an employee, since the Inland Revenue Department will set up a file for you beforehand before you can process your tax return, the tax return for first-time filing is usually not sent out on a fixed date.

2023 Tax Returns丨Part time, no income, no receipt of tax return, and still have to file a tax return?

Even if you are not a full-time employee, you need to file a tax return, whether you are a part-time, freelance, or self-employed person who earns income by running a business, buying and selling goods, or providing professional or personal services.

In the year of assessment, taxable income includes salaries, allowances and bonuses. If your annual income is below the basic allowance of HK$132,000, or if your projected income does not exceed the allowance, you will need to file a tax return if you receive one.

If you do not receive a tax return, and you often need to file a tax return in previous years, it is your responsibility to contact the Inland Revenue Department (IRD) within 4 months after the end of the year of assessment to make enquiries, either by phone or in person, and to obtain a copy of the tax return, or you can use the online “eTax” service to make enquiries, and to review all tax and tax return matters.

2023 Tax Returns|Missing a tax return? Or want to amend your tax return?

As required by the Inland Revenue Department (IRD), you can contact the Commissioner of Inland Revenue (the Commissioner) by submitting a signed copy of the notice. When writing this notice, please be sure to include the following important information: your name, file number, the relevant year of assessment, and details of the items that need to be corrected or supplemented to facilitate the prompt processing of the amended tax return.

2023 Tax Returns丨What are the consequences of omitting to file a tax return or submitting a tax return late?

According to the Hong Kong Inland Revenue Ordinance, taxpayers should fulfill their responsibility to complete their tax returns correctly and submit them to the Inland Revenue Department (IRD) in a timely manner to facilitate accurate tax assessment.

At the same time, in order to combat all acts of deliberate tax evasion or assisting others to evade tax, the IRD can prosecute taxpayers in accordance with sections 80 and 82 of the Inland Revenue Ordinance if they are found to have omitted to file tax returns or are suspected to have evaded tax.

In the case of late filing of tax returns, the most serious penalty is a fine of HK$10,000 and prosecution. Moreover, the Inland Revenue Department (IRD) is unable to receive the “Allowances” and “Deductions” returns, which in effect means that taxpayers are only entitled to the “Basic Allowance” and are no longer entitled to the tax deductions for MPF contributions, recognized charitable donations, self-education expenses, and so on.

Mexus Accounting Firm

Mexus is a well-established and experienced accounting firm with a reputation for innovative and enduring accounting results.

Mexus is led by certified public accountants (CPAs) recognized by the Hong Kong Institute of Certified Public Accountants (HKICPA) with expertise in the areas of accounting/auditing, auditing, business consulting and information technology.

Mexus is committed to providing accounting, financial information bookkeeping, verification and tax preparation services to a wide range of corporate clients in the spirit of continuous optimization and fulfillment of all client’s commitments.

Certified Public Accountants

Mexus’ certified public accountants, through their professional and sound accounting skills, can help clients determine the best accounting solutions to expand their business without worries, based on in-depth communication with clients and in compliance with accounting standards.

Accounting and Audit Arrangement

Whether a business requires professional accounting services or a comprehensive audit of its business and tax return, Mexus Accounting and our trained certified public accountants and related professionals are able to perform accounting and scheduling audits for any situation.

Mexus Accounting Firm’s services include:

◆ Daily corporate accounting and financial processing, filing and bookkeeping

◆ Reconciliation of annual, quarterly or monthly financial statements

◆ Arranging audited reports by accountants

◆ Tax return filing service/tax return consultation

◆ Company formation and related services

◆ Application for work visa and special program visa

◆ Business Consulting

◆ Information Technology Consulting

(Consultants analyze business network infrastructure and create IT plans for future development)

Why do companies need accounting?

Accounting is a profession that focuses on analyzing the financial status of a business, and is also an indispensable part of managing a business. Whether it is a start-up or a business that has been in operation for many years, it needs the accounting services of an accounting firm and a certified public accountant (CPA).

Moreover, according to section 51C of the Inland Revenue Ordinance of the Hong Kong Government, all persons carrying on a business, profession or trade in Hong Kong are required to keep records of their income and expenditure for a period of not less than seven years for the purpose of ascertaining their assessable profits.

Failure to do so without reasonable excuse is punishable by a fine of up to HK$100,000.

Why do I need an accounting firm?

Accounting services provided by an accounting firm can help a company to account for and monitor its cash flow and related accounting information, and visualize its financial accounting reports so that decision makers can have a more comprehensive understanding of its financial position.

Enterprises will continue to optimize and plan their future financial strategies and improve their risk management to ensure the success of their operations.

In addition, through the help of professional certified public accountants in “bookkeeping, accounting and reporting”, as well as providing relevant analysis and recommendations, the profitability and management ability of enterprises can be greatly enhanced.

At the same time, accounting services represented by a CPA firm are more cost-effective and ensure compliance with accounting standards.

Filing Tax Returns (2023)

“Filing a tax return is an annual tax obligation for all taxpayers. Whether you are a full-time employee, part-time, freelancer or self-employed, as long as you have earned income in the year of assessment, you are required to file a tax return and return it to the Inland Revenue Department (IRD) on time. The year of assessment is from April 1 of each year to March 31 of the following year. In Hong Kong, if your annual salary/income does not exceed the basic allowance of HK$132,000, you basically do not need to pay tax. However, even if your income is below the allowance, you are required to inform the Inland Revenue Department (IRD) of your income status by faithfully completing and submitting a tax return issued by the IRD. For first-time taxpayers, employers are required to submit the relevant forms to the IRD within 3 months of the new employee’s commencement of employment and send the tax return to the employee within 5 months. Professional accounting firms, such as Mexus, can provide professional accounting and tax preparation services to help taxpayers deal with various tax issues.

The above information is for reference only. If you have any questions or information about tax return (personal tax return, corporate tax return, accountant tax return), you are welcome to contact our professional consultants and we will provide you with a free quote and consultation service later. #NotReceivedTaxBill2023 #FirstYearTax #FirstTax #FirstYearOfWorkTaxFiling

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