Tax Returns For 2017-18 Issued

The Inland Revenue Department today issued 190,000 profits tax returns, 130,000 property tax returns and 300,000 employer’s returns for the 2017-18 year.

About 2.6 million tax returns for individuals will be issued on May 2.

In this year’s Budget, Financial Secretary Paul Chan proposed a one-off reduction of 75% for profits tax, salaries tax and tax under personal assessment for 2017-18, subject to a ceiling of $30,000.

The reduction will be incorporated into this year’s tax bills once the relevant legislation is enacted.

Under a two-tiered profits tax rates system to be implemented from the year 2018-19 onwards, tax for the first $2 million of profits for corporations and unincorporated businesses will be lowered to 8.25% and 7.5% respectively.

Profits above that amount will be subject to the rates of 16.5% and 15%.

Taxpayers have to state whether they are chargeable at the two-tiered rates for 2018-19 provisional tax on their 2017-18 tax returns.

The department reminds taxpayers to complete tax returns properly, file them on time and also encourages them to use the eTAX system.