Tax Revenue Up 13%

The Inland Revenue Department collected $328.6 billion in tax revenue for 2017-18, up 13% on the previous year.

Commissioner of Inland Revenue Wong Kuen-fai said today the increase came mainly from stamp duty receipts, which increased 54% to $95.2 billion year-on-year.

"The property price has increased quite dramatically in 2017. On top of that, the number of property transactions in 2017-18 has also increased.

"So the increase in the number of property transactions in 2017 will account partly for the increase in stamp duty."

Profits tax collection was $139.1 billion, similar to the previous year, and salaries tax collection increased by 3% to $60.8 billion.

Mr Wong forecast total revenue collection to be $342.3 billion for the coming year.

The department has sent out 2.6 million tax returns for individuals.

Taxpayers should file their returns by June 2, while sole proprietors of unincorporated businesses should file theirs by August 2.

People filing their returns online using eTAX will have an automatic one-month extension.

The Financial Secretary proposed a 75% reduction in profits tax, salaries tax and tax under personal assessment, subject to a ceiling of $30,000 per case, in this year's Budget.

Mr Wong said the department will implement the reduction for the 2017-18 tax bills after the enactment of the legislation for the proposal.

He added a two-tiered profits tax regime will be introduced from 2018-19. Taxpayers must state in the 2017-18 tax returns whether their businesses are chargeable at the new rates for the 2018-19 provisional tax.

Click here for advice on completing tax returns.