Hong Kong's Inland Revenue Department has reminded taxpayers that second instalments of 2024-25 tax fall due in April, warning that late payment risks escalating penalties, third-party recovery action, travel restrictions, and insolvency proceedings.
The Hong Kong Inland Revenue Department (IRD) has issued a notice regarding the second instalments of tax for the 2024-25 year of assessment, which are generally payable in April. IRD urges taxpayers to note the due dates as stated on their demand notes and make prompt payments.
Tax payments can be made through PPS, bank ATMs, online channels, in person, or by post.
Failure to pay tax on time may result in recovery actions without prior notice, including a 5% surcharge, followed by an additional 10% on outstanding amounts after six months, recovery from third parties (such as employers, banks, tenants, or debtors), initiation of civil court proceedings, the issuance of a Departure Prevention Direction to restrict travel from Hong Kong, and bankruptcy or winding-up petitions.
Taxpayers experiencing financial difficulties may apply in writing for payment by instalments; however, if approved, surcharges will still apply to any unpaid amounts after the due date.
