Have you pondered the possibility of having remitted an excess amount in taxes? As we navigate through the 2024 fiscal year, it’s crucial for all businesses and individual tax filers to be well-versed in the most recent tax refund provisions. Should your tax remittances surpass the requisite amount, you are entitled to seek a reimbursement. This piece aims to explore the latest tax refund policies and protocols in Hong Kong, with the goal of empowering you to optimize your tax planning strategies.
The Fundamentals of Hong Kong’s Tax Rebate Framework
In accordance with the Hong Kong Inland Revenue Ordinance, the tax rebate mechanism is designed to provide recompense for any surplus tax payments. Should your tax payments for the fiscal year surpass your actual tax obligations, you hold the right to submit a tax rebate claim.
The timeline for submitting such claims, however, has been recalibrated. As per the updated regulations, applicants must finalize their tax rebate applications within a six-month window post the conclusion of the fiscal year. For the 2024 fiscal year, this implies that all applications must be wrapped up by the 30th of June, 2025.
Under these revised regulations, the rebate sum will be determined by the variance between your assessed tax obligations and the taxes actually remitted. In instances where the remitted tax amounts surpass the obligations, a proportional rebate will be issued.
2024 Tax Rebate Provisions
For the 2024-25 fiscal period, the Financial Secretary of Hong Kong has unveiled an array of novel tax initiatives. The key highlights of these policy shifts are as follows:
- A comprehensive salary tax refund, with an upper limit of HK$6,000, is introduced, potentially impacting approximately 1.9 million taxpayers.
- The child tax exemption and the additional exemption for the year of birth will be elevated from HK$130,000 to HK$140,000, a change that may affect around 324,000 taxpayers.
- For the initial two quarters of the 2024/25 fiscal year, a reduction in land rent will be mandated, with a ceiling of HK$1,000 per household per quarter, a measure that could encompass 3.03 million residential properties.
Navigating the Tax Rebate Application Process
In reality, there is no need for an additional application. By completing your personal tax return for the 2023/24 fiscal year in the usual manner—that is, by filling out the BIR60 form—you automatically enter the process. Should there be an overpayment of taxes, the tax authority will subsequently issue a refund via check. Adhering to the standard procedure for tax return submission and awaiting the tax authority’s rebate check is all that is required.
Claiming a Reimbursement for Surplus Tax Payments
If you have the conviction that your tax payments have exceeded the necessary figure, you possess the right to petition for a refund.
Any individual, within a six-year span concluding the fiscal year’s end, or within six months following the receipt of an assessment notification (considering the latter if it is later), who can validate that their tax payments have surpassed the due amount, stands eligible for a refund.
Each executor, trustee, or liquidator is vested with the authority to apply for a refund as stipulated in the initial segment, with rights equating to those of the individual they represent (excepting circumstances involving death, incapacity, bankruptcy, or dissolution).
For individuals not ordinarily resident in Hong Kong who have been taxed under another’s name and for whom the tax has been settled by that other party, either the latter individual or the non-resident (but not both) may apply for a refund as per the initial segment. Should the refund be directed to the latter person, their receipt will serve as a legitimate document for the refund.