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Hong Kong Issues Notice on Second Tax Instalments for Year of Assessment 2020/21 — Orbitax Tax News & Alerts

Hong Kong Inland Revenue has issued a notice on the second instalments of tax for the year of assessment 2020/21, which are generally due in April.



Pay promptly as second instalment is falling due

The second instalments of tax for the year of assessment 2020/21 are generally falling due in April. The Inland Revenue Department urges taxpayers to note due dates as stated on their demand notes and make prompt payments.

Tax payment can be made by:

  • PPS
  • Bank ATMs
  • Payment via Internet
  • Payment in Person
  • Payment by Post

It pays to pay tax on time

Please pay tax on time to avoid penalty and the inconvenience that might be caused by recovery actions taken by this Department.

Default in tax payment can lead to the following recovery actions. No prior notice will be given.

  • Immediate imposition of 5% surcharge; plus a further 10% surcharge on sums remaining unpaid (including 5% surcharge) 6 months after due date
  • Recovery from third parties (including employers, banks, tenants or debtors)
  • Institution of civil proceedings in court
  • Application for Departure Prevention Direction to prevent the defaulter from leaving Hong Kong
  • Petition for bankruptcy/winding up order against the defaulter

Taxpayers with financial difficulties in settling their tax bills by the due dates may write in to apply for payment by instalments. For instalment plans approved for settlement of Salaries Tax, Profits Tax and Personal Assessment demand notes issued between May 2021 and May 2022 for the Year of Assessment 2020/21, provided that the instalment plans are duly adhered to, no surcharge will be imposed for a maximum period of one year counting from the respective due dates of the demand notes.

For more details on payment methods and instalment applications, please visit our website or call 187 8033.