HONG KONG – The Inland Revenue Department (IRD) of Hong Kong collected HK$374.5 billion in revenue during the 2024-25 fiscal year as tax revenue increased 10 percent over the previous year.

For the current fiscal year, the IRD forecasted a seven percent rise in tax revenue, estimated at HK$401.4 billion.

Announcing the revenue data at a press conference on Friday, Commissioner of Inland Revenue Benjamin Chan Sze-wai said they had sent out about 2.66 million tax returns for individuals for the year of assessment 2024-25.

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Taxpayers should file their tax returns by June 2. For sole proprietors, a three-month period is allowed and the filing deadline is Aug 2. Those filing through eTAX will be granted a one-month extension.

Salaries tax, tax under personal assessment, and profits tax for 2024-25 will be reduced by 100 percent, subject to a ceiling of HK$1,500 per case, said Chan.

From the year of assessment 2024-25, a two-tiered standard rates regime for salaries tax and tax under personal assessment has been implemented.

While calculating the amount of salaries tax or tax under personal assessment at standard rates, the first HK$5 million of net income is subject to the standard rate of 15 percent, and the portion exceeding HK$5 million is subject to the standard rate of 16 percent.

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There has also been an increase in the deduction ceilings for home loan interest or domestic rent from HK$100,000 to HK$120,000 for taxpayers who were residing with their newborn children born on or after Oct 25, 2023, according to the government.

A new deduction for expenses on assisted reproductive services has been introduced, subject to a ceiling of HK$100,000.

On the enhancement measures for the deduction of expenses under profits tax, there have been tax deductions for expenses incurred for reinstating the condition of leased premises to their original condition, and the time limit for claiming annual allowances in respect of industrial and commercial buildings or structures has been removed.

Stressing that the IRD is committed to promoting tax digitalization, Commissioner Chan said the IRD will launch three portals under eTAX in July – Individual Tax Portal, Business Tax Portal and Tax Representative Portal – to facilitate taxpayers and enhance the efficiency, reliability and accuracy of return filing.

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“Existing individual tax services provided by eTAX will be migrated to the Individual Tax Portal with a new design and enhanced functions,” he said, adding that the Business Tax Portal and the Tax Representative Portal will enable businesses and service agents, respectively, to handle tax and business affairs electronically.