 |
Tax Information :
Holding over
of Provisional Tax
If the provisional tax is payable by 2 instalments,
and the first instalment has been settled by the due date, an application
for holding over of payment of the whole or part of the second instalment
may be made subject to the prescribed time limit and grounds for
application.
How to lodge an application
Application for holding over of payment of provisional
tax must be made in writing. You may download and complete the relevant
parts of the form IR1121
for holdover of provisional tax, and return it to the Inland Revenue
Department either by post (P.O. Box 28777, Gloucester Road Post
Office, Hong Kong) or by fax (2877 1232).
You may fill in a form IR 1121 electronically,
sign it by means of a digital certificate and transmit it to the
Inland Revenue Department through the Internet. If you wish to submit
an application form IR1121 electronically, you have to install the
e-Form program in your computer first, and then download the e-Form
IR1121 and install it in the e-Form program. For details, please
visit our web page Electronic Services
: e-Form.
If you are an individual taxpayer, you may also lodge your request through eTAX after logging in your eTAX Account.
Grounds for application
- Provisional profits tax
An application for holding over of payment of provisional profits
tax may be made on one of the following grounds:
| (1) |
The assessable profits of the person
for the year of assessment are, or are likely to be, less than
90% of the assessable profits for the year preceding the year
of assessment or of the estimated sum in respect of which the
person is liable to pay provisional profits tax.
|
|
|
Supporting documents including properly
signed draft accounts covering a period of not less than 8 months
should be submitted together with the application.
|
|
(2)
|
The amount of any loss brought forward
for set off to that year of assessment has been omitted or is
incorrect.
|
| (3) |
The person has ceased, or will before
the end of the year of assessment cease, to carry on his trade,
profession or business and that the assessable profits for that
year of assessment are, or are likely to be, less than the assessable
profits for the year preceding the year of assessment or of
the estimated sum in respect of which the person is liable to
pay provisional profits tax.
|
|
(4)
|
The person has elected or is deemed
to have elected to be personally assessed for that year of assessment
and that such Personal Assessment is likely to reduce his liability
to tax.
|
|
(5)
|
The person has objected to his assessment
to Profits Tax for the year preceding the year of assessment.
|
Grounds for application
- Provisional salaries tax
An application for holding over of payment of provisional
salaries tax may be made on one of following grounds:
| (1) |
The person has become
entitled to an allowance, which was not given in the notice
for payment of provisional tax, for example, child allowance
for a newborn baby, or dependent parent allowance for a parent
who has attained the qualifying age in the year of assessment
for which provisional tax was charged. For year of assessment
2005/06 onwards, dependent parent /grandparent allowance is
granted to taxpayers maintaining parent/grandparent aged 55
or above. For details, please click
here.
|
| |
Full particulars relating to the allowance
claimed should be provided in the application, such as name
and date of birth of the new born child, or name, date of
birth and Hong Kong Identity Card number of the dependent
parent/grandparent.
|
| (2) |
The net chargeable income
of the person for the year of assessment for which provisional
tax was charged is, or is likely to be, less than 90% of the
net chargeable income for the preceding year or of the estimated
sum in respect of which the person is liable to pay provisional
tax. Please refer to FAQs on
Application for Holdover of Provisional Tax Question 2, 3 and
4 for examples. |
| |
Estimated amount of income should be stated
in the application. For example, if you wish to apply for
holdover of the provisional tax for 2008/09, you should state
your estimated income for the period from 1 April 2008 to
31 March 2009, and give reason for the reduction of income
such as unemployed, retired, salary reduction or others.
|
| (3) |
The person has ceased,
or will before the end of the year of assessment for which provisional
tax was charged cease, to derive income chargeable to salaries
tax.
|
| (4) |
The person has objected
to his/her salaries tax assessment for the year preceding the
year of assessment for which provisional tax was charged.
|
Grounds
for application - Provisional property tax
An application for holding over of payment
of provisional property tax may be made on one of the following
grounds:
| (1)
|
The assessable value for the
year of assessment for which provisional tax was charged is,
or is likely to be, less than 90% of the assessable value
for the preceding year or of the estimated assessable value
in respect of which the person is liable to pay provisional
tax. For example, a person who is assessed to provisional
property tax based on assessable value of $300,000 may apply
for holding over of payment of provisional tax if the assessable
value for the relevant year is, or is likely to be, less than
$270,000.
Full particulars of the rental received and receivable should
be furnished in support of the application.
|
| (2) |
The person has ceased, or will before the end of the year
of assessment for which provisional tax was charged cease,
to be an owner of property, and the cessation of ownership
will result in a reduction of the assessable value on which
provisional tax was charged.
Full particulars of the cessation of ownership and the rental
received and receivable should be furnished in support of
the application.
|
|
(3) |
The person has elected to be
personally assessed for the year of assessment for which provisional
tax was charged, and the election is likely to reduce his/her
liability to tax.
|
|
(4) |
The person has objected
to his/her property tax assessment for the year preceding the
year of assessment for which provisional tax was charged.
|
Common
Questions and Answers for Application for Holdover of Provisional
Tax
For common questions and answers for application
for holdover of provisional tax, please click
here.
|
|