The Hong Kong government has announced a series of measures in response to the coronavirus (COVID-19) pandemic. Taxpayers who encounter financial difficulties in settling their tax bills on time may apply to the Inland Revenue Department (IRD) for payment of tax by instalments before the due date of the tax demand notes. The Inland Revenue Ordinance provides that a surcharge of not exceeding 5% on the amount of tax outstanding after the due date may be imposed and a further surcharge of not exceeding 10% may also be imposed on the amount remaining unpaid (including tax and 5% surcharge already imposed) after 6 months from the due date.
The 2020-21 Budget has proposed one-off reductions of salaries tax, tax under personal assessment and profits tax for the year of assessment 2019/20 by 100 percent, subject to a ceiling of $20,000 per case. The reductions will be reflected in taxpayers’ final tax payable for the year of assessment 2019/20.
