Tax
Information : Holdover
of Provisional Tax or Payment by Instalments Application Hotlines |
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Taxpayers
anticipating a drop in their income or profits or facing financial
difficulties in settling their tax bills may apply for holding
over of provisional tax or payment of tax by instalments.
The Department has stepped up administration measures in the
following areas and will flexibly deploy its resources to
ensure that applications received are promptly processed. |
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Holdover Applications |
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Payment by Instalments |
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Proactive Advice |
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| Holdover Applications |
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| Who can apply |
Taxpayers
may apply for holding over of provisional tax for the year
of assessment 2010/11 if: |
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their income or profits for 2010/11 will fall by more than
10% from that in 2009/10); or
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they cease employment, business or property ownership during
the year; or
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they are entitled to an allowance that has not been taken
into account in the computation of the 2010/11 provisional
tax.
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| How
to apply |
Application for holding over
of provisional tax must be made in writing. Taxpayers may
download and complete the relevant parts, in particular the
daytime contact telephone number, of the Application
Form IR 1121.
For holding over of profits tax, applicants
have to produce the latest management accounts of the business
(preferably not less than 8 months, a lesser period may be
accepted in special circumstances) and their estimate of the
profits or loss for the rest of the year. |
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| When
to apply |
| The application should
be lodged not later than: |
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28 days before the due date for payment of the
provisional tax, or
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| (b) |
14 days after the date of issue of the notice for
payment of the provisional tax,
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| whichever is the later. |
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You may check the deadline
for making holdover application by referring to your demand
note. (sample)
If you missed the deadline for the first
instalment, you may still apply for holding over of the second
instalment of the provisional tax if you have settled the
first instalment on time. You should lodge your application
28 days before the due date for payment of the second instalment.
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| Facilities provided
by IRD |
| To facilitate
taxpayers to make holdover applications, the Department provides: |
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Enquiry Hotline 187 8011;
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Designated Fax line for applications by fax 2519 6896 and;
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Postal box for applications by mail (P.O. Box 28487, Gloucester
Road Post Office, Hong Kong) for accepting holdover applications;
as well as
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electronic processing of holdover applications under eTAX
for eTAX account holders with income from employment, sole
owned properties and sole proprietorship businesses and
providing instant acknowledgement of the application.
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The Department pledges to reply
to the applicant within 12 working days.
Taxpayers can rest assured of our prompt processing of their
claims and need not contact the Department to enquire
the progress in the 2 weeks after the application
is lodged.
Apart from lodging their holdover applications
through eTAX, eTAX account holders may also make use of its
Tax
Computation program to calculate the estimated revised
amount of tax payable as well as access to the holder's tax
position.
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| Enquiry |
| For further information
on holdover applications, please click
here or call our special Enquiry Hotline 187 8011. |
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The Department shall proactively offer advice to applicants
for holdover of provisional tax and payment by instalments
on whether the tax charged could be reduced by applying
for joint
assessment or personal
assessment if such application has not been made
previously.
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