Charitable Institutions

Charitable institutions are exempt from tax under the Inland Revenue Ordinance. As at 31 March 2005, the number of charities exempt from tax was 4,162, of which 266 charities were granted exemption during the year. The list of charities exempt from tax is available on IRD Homepage.

Donations to charities exempt from tax may be tax deductible. For the year of assessment 2003-04, the amounts of approved charitable donations allowed under Profits Tax and Salaries Tax were $1.28 billion and $2.89 billion respectively.


General Inspection

Tax inspectors carry out on-site inspections of businesses and call on individuals to check their compliance with the various Ordinances administered by the Department. A total of 78,674 visits were made during the year.


Internal Audit

Internal auditors perform an important role within the Department. Their activities are directed at ensuring that work carried out within the Department complies with relevant legislation and departmental procedures. They also examine internal control systems and work methods with a view to identifying areas where changes can be made to improve output and efficiency.



In 2004-05, the Department carried out a large-scale project for the replacement of the PABX system in Revenue Tower. The new PABX system provided more updated functions and features in the telephone system and enhanced both external and internal communication. This has facilitated the provision of a better quality service to the public as well as to the officers of other user departments in Revenue Tower.

To provide a more comfortable environment to the taxpayers, the Department had improved the ventilation of the counters and interview rooms on Individual Tax floors in Revenue Tower. In addition, the counters were equipped with on-line facilities to provide more effective and efficient front-line service.