Decoding Hong Kong’s eTAX Notifications: How to Respond to IRD Communications

In Hong Kong’s increasingly digitalized tax environment, understanding how to properly receive, interpret, and respond to Inland Revenue Department (IRD) communications through the eTAX platform has become essential for taxpayers. Whether you’re receiving your first tax return or dealing with a complex assessment query, knowing the proper procedures and deadlines can save you from penalties, additional charges, and unnecessary stress.

This comprehensive guide explains the types of IRD notifications you’ll encounter, the response requirements for each, and the critical procedures you need to follow to maintain compliance with Hong Kong’s tax laws.

Understanding the eTAX Notification System

What is eTAX?

The eTAX platform is Hong Kong’s comprehensive digital tax portal, launched by the Inland Revenue Department to streamline tax administration and communication. As of August 14, 2024, the IRD deployed an enhanced version of the eTAX portal featuring an intuitive, mobile-responsive design that allows taxpayers to manage their obligations from any device, whether desktop, tablet, or smartphone.

The platform provides real-time reminders, e-notices, and e-alerts directly in your account, helping you stay on top of important dates for tax return submission and payments. This paperless approach means everything from tax returns to official notices is delivered in electronic format, creating a centralized hub for all your tax communications.

eTAX Message Box Structure

The eTAX notification center is organized into two primary sections:

All electronic notices and documents are retained in the Message Box for 6 years from the date of issue, providing you with a comprehensive archive of your tax communications. Additionally, upon your selection, email notifications can be sent to your registered email address to alert you when new messages arrive in your inbox.

Types of Alert Messages

The eTAX system sends various types of alert messages to keep you informed:

• Return Filing Reminders: Approximately one week before the return filing due date, you’ll receive an alert message with links to view the electronic notice, check Internet filing criteria, and file your return online
• Payment Due Alerts: About one week before the tax payment due date, an e-alert reminds you of your tax liability for Salaries Tax, Property Tax, Profits Tax, or Personal Assessment
• Payment Receipts: Electronic receipts are sent to your inbox (regardless of your preference for electronic notices) within approximately 2 working days after the IRD receives your payment
• Assessment Notices: Official notifications of tax assessments and determinations

Types of IRD Communications and How to Respond

1. Tax Returns (Form BIR60 for Individuals)

Tax returns are issued annually to taxpayers, requiring them to declare their income and claim relevant deductions. For the 2024/25 tax year, individual tax returns were issued on May 2, 2025.

Action Steps:

1. Log in to your eTAX Individual Tax Portal (ITP) account
2. Review the tax return notice in your Message Box inbox
3. Gather all relevant income documentation, receipts for deductions, and supporting records
4. Complete the return electronically through the eTAX platform to benefit from the automatic extension
5. Review all entries carefully before submission
6. Submit before the deadline and retain the acknowledgment receipt

2. Demand Notes (Tax Bills)

A tax demand note is an official document issued by the IRD notifying taxpayers of their tax obligations and payment requirements. This document demands immediate attention, as non-compliance can result in penalties, surcharges, and legal consequences.

Demand notes typically include:

• The assessed tax amount due
• Payment deadline (usually within 1 month)
• Shroff account number for payment (prefix 1, 2, 3 for Profits Tax; 5 or 7 for Property Tax; 6 for Personal Assessment; 9 for Salaries Tax)
• Payment methods and instructions
• Provisional tax for the following year (if applicable)

Action Steps:

1. Review the demand note carefully to verify the assessed amount
2. If you agree with the assessment, arrange payment before the due date using eTAX payment services, PPS, internet banking, or other approved methods
3. If you disagree with the assessment, prepare and submit a written objection within 1 month (see Objection Process below)
4. Keep records of all payment receipts or objection submissions

3. Enquiry Letters and Information Requests

The IRD may issue enquiry letters requesting additional information, clarification, or supporting documentation regarding your tax affairs. These may relate to specific deductions claimed, sources of income, or general compliance reviews.

Action Steps:

1. Read the enquiry letter thoroughly to understand exactly what information is being requested
2. Gather all relevant documents, records, and evidence (remember: you must retain records for at least 7 years)
3. Prepare a clear, organized written response addressing each point raised
4. If needed, consult with a tax professional to ensure your response is comprehensive and appropriate
5. Submit your response via eTAX (you can upload up to 5 supporting documents with a total file size up to 200MB)
6. If you cannot meet the deadline, immediately apply for an extension with a reasonable explanation
7. Keep copies of all correspondence and submitted documents

4. Assessment Notices

An assessment notice is the IRD’s formal determination of your tax liability for a particular year of assessment. It may be based on your submitted tax return, estimated by the IRD if you failed to file, or adjusted following a review or audit.

The Objection and Appeal Process

Hong Kong’s tax objection and appeal system is governed by Sections 64-66 of the Inland Revenue Ordinance and provides a structured pathway for taxpayers who disagree with IRD assessments or determinations.

Stage 1: Objection to the Commissioner (Section 64)

When an assessment is issued, you have the right to object within one month of the date of the notice of assessment. This is the mandatory first step in challenging any assessment.

Objection Requirements:

• Timing: Submit within 1 month of the assessment notice date
• Format: Written notice (no prescribed form, but must be in writing)
• Content: Detailed grounds explaining precisely why you object to the assessment
• Supporting Evidence: Include relevant documentation and facts supporting your position

The Objection Review Process:

1. Initial Review: The original assessor reviews your objection first
2. Appeal Section Review: If the assessor believes no changes are warranted, the file is transferred to the IRD’s Appeal Section (a separate unit) for de novo review
3. Commissioner’s Determination: The Commissioner reviews the Appeal Section’s recommendations and issues a determination with a statement of facts and reasons
4. Possible Outcomes: The determination may confirm, reduce, increase, or annul the original assessment

Applying for Holdover of Tax

To avoid undue financial hardship while your objection is being considered, you can apply to the Commissioner for a holdover of the disputed tax amount.

Stage 2: Appeal to the Board of Review (Sections 65-66)

If you disagree with the Commissioner’s determination of your objection, you can appeal to the Board of Review, an independent statutory tribunal constituted under Section 65 of the IRO.

Appeal Requirements:

• Timing: Within 1 month after receiving the Commissioner’s written determination, reasons, and statement of facts
• Format: Written notice of appeal to the Board of Review with copy to the Commissioner
• Required Documents: Statement of grounds of appeal and copies of the Commissioner’s determination, reasons, and statement of facts
• Nature: The Board acts as an independent trial court conducting de novo hearings

Board of Review Procedures:

• Independent hearing of evidence and arguments
• Both taxpayer and IRD present their cases
• Board issues written determination with findings of fact and reasons
• If the Board does not reduce or annul the assessment, the appellant may be ordered to pay costs up to HKD 25,000

Stage 3: Further Appeals to the Courts

Hong Kong’s tax appeal system includes a unique feature: either the taxpayer or the Commissioner can transfer a case directly from the Board of Review to the Court of First Instance, or appeal the Board’s decision on questions of law.

Recent Notable Court Cases (2024):

• Touax Container Investment Limited v CIR (CFI, August 30, 2024): The CFI ruled that the Board of Review erred in its approach to determining the source of profits from container trading and leasing businesses, remitting the case for rehearing on insufficient findings of fact
• Patrick Cox Asia Limited v CIR (CA, October 17, 2024): The Court of Appeal upheld the Board’s decision that upfront payments under a trademark sub-licensing arrangement were revenue in nature and Hong Kong sourced, but found errors in determining that royalty income was sourced in Hong Kong, remitting for rehearing

Record Retention Requirements

Maintaining proper records is not just good business practice—it’s a legal requirement in Hong Kong that directly affects your ability to respond to IRD communications and substantiate your tax positions.

The 7-Year Rule

Under Section 51C of the Inland Revenue Ordinance, all taxpayers must retain business and tax records for a minimum of 7 years from the date of the transaction. This requirement applies to both businesses and individuals with rental or business income.

Required Records

The IRD requires the following types of records to be maintained:

Electronic Record Storage

The IRD permits electronic storage of records, provided they meet specific requirements:

• Readable and Retrievable: Records must remain accessible and readable throughout the retention period
• Stable Formats: Use formats like PDF or XML that won’t become obsolete
• Complete Copies: Ensure you can retrieve full copies during audits or inspections
• Scanning Options: For high-volume documents, scanning and storage on CD-ROMs or secure cloud platforms is acceptable

Penalties for Non-Compliance

Failure to maintain proper records carries serious consequences:

Best Practices for Managing IRD Communications

1. Proactive Monitoring

• Log in to your eTAX account regularly, at least weekly during tax season
• Enable email notifications for all new messages in your eTAX inbox
• Download the eTAX mobile app for real-time access from your smartphone or tablet
• Set calendar reminders for key tax deadlines

2. Organized Record-Keeping

• Implement a systematic filing system (digital or physical) for all tax-related documents
• Create separate folders for each tax year
• Maintain backup copies of all electronic records in multiple locations
• Archive correspondence with the IRD chronologically
• Mark important deadlines clearly on all documents

3. Timely Response Protocol

• Read all IRD communications immediately upon receipt
• Note all deadlines and work backwards to create action timelines
• If you need clarification, contact the IRD promptly rather than waiting until the deadline approaches
• If you cannot meet a deadline, apply for an extension as soon as you realize the issue
• Never ignore IRD communications—penalties escalate with time

4. Professional Assistance

Consider engaging professional help when:

• You receive an enquiry letter about complex tax matters
• You need to file an objection to an assessment
• You’re facing a tax audit or investigation
• You have multiple sources of income or complex tax affairs
• You’re considering an appeal to the Board of Review or courts
• Your business has grown and requires specialized tax planning

Tax representatives can lodge block extension applications electronically and communicate with the IRD through the Tax Representative Portal (TRP), which was enhanced in 2025 to improve efficiency and accuracy.

5. Leverage eTAX Features

The enhanced 2024/25 eTAX platform offers numerous features to simplify tax compliance:

• Document Upload: Upload up to 5 supporting documents (total file size up to 200MB) when requesting amendments or responding to enquiries
• Mobile Responsiveness: Access all functions from smartphones and tablets
• Automatic Extensions: Electronic filing grants automatic 1-month extension for individual returns
• Payment Integration: Make payments directly through the platform
• 6-Year Archive: Access all historical notices and messages from the past 6 years

Understanding Your Taxpayer Rights

As a Hong Kong taxpayer, you have specific rights when dealing with the IRD:

Common Mistakes to Avoid

Conclusion

Successfully navigating Hong Kong’s eTAX notification system and IRD communications requires vigilance, organization, and a clear understanding of your obligations and rights. The digitalization of tax administration through the enhanced eTAX platform has made communication more efficient, but it has also placed greater responsibility on taxpayers to monitor their accounts regularly and respond promptly to all notifications.

By understanding the different types of IRD communications, adhering to response deadlines, maintaining proper records for at least 7 years, and knowing the objection and appeal procedures, you can ensure compliance while protecting your interests. Remember that the 1-month deadline applies to most responses, and the “pay first, argue later” principle means you’ll generally need to pay assessed tax while pursuing objections unless you secure a holdover.

The structured appeal process—from initial objection under Section 64, through the Board of Review under Sections 65-66, to the courts—provides robust mechanisms for challenging assessments you believe are incorrect. However, each stage has strict timeframes and procedural requirements that must be followed precisely.

Whether you’re handling routine tax returns or complex disputes, leveraging the features of the eTAX platform, maintaining meticulous records, and seeking professional assistance when needed will help you manage your Hong Kong tax obligations effectively and avoid costly penalties.