โ You Must File a Return Even If You Owe No Tax
If the IRD sends you a BIR60 tax return form, you are legally required to complete and submit it by the deadline โ even if your income is below the taxable threshold and you owe zero tax. Failure to file carries an automatic penalty of up to HKD 10,000 per form. Never ignore an IRD form.
Common Challenges
Receiving a First Tax Return
Many students panic when they receive their first BIR60. The form looks intimidating, but for most students, completion is straightforward with the right guidance.
โ Risk: Missing the filing deadline โ automatic penalty + surcharge
Not Claiming Personal Allowance
Every individual is entitled to a basic personal allowance of HKD 132,000 for 2025/26. Many first-time filers forget to claim it and overpay.
โ Risk: Paying salaries tax that you legally do not owe
Self-Education Expense Deduction
Tuition fees for qualifying courses paid by yourself can be deducted up to HKD 100,000/year under s.12(1)(f) of the IRO.
โ Risk: Missing the self-education deduction โ overpaying on working-student income
Provisional Tax in Year Two
In your second working year, the IRD issues a combined bill covering current-year tax PLUS provisional tax for next year โ many new workers are shocked by the size.
โ Risk: Cash flow shock โ missed payment โ surcharge and enforcement
Who Is This For?
University students with part-time jobs
Students working evenings, weekends, or during summers who receive their first IRD correspondence.
Recent graduates in their first full-time job
New graduates filing their first full salaries tax return with a year of employment income.
Students paying for their own education
Those funding their own tuition fees who can claim the self-education expense deduction.
Students running a small side business
Entrepreneurial students selling products or services online who need business registration guidance.
Parents helping adult students file correctly
Parents who want their working children to understand and meet their tax obligations from the start.
What We Do
First Tax Return Completion
We complete your BIR60 correctly, claiming all applicable allowances and deductions.
Clear explanation of each section in plain language
Self-Education Deduction Claim
We identify qualifying courses and claim up to HKD 100,000 self-education expense deduction.
Applies to courses providing specific skills for current employment
MPF Deduction Calculation
We ensure your mandatory MPF contributions are correctly deducted from assessable income.
Up to HKD 18,000/year deductible
Provisional Tax Explanation & Management
We explain your provisional tax demand and help you plan for the combined payment in year two.
Including instalment arrangements if needed
First-Year Tax Education Session
A 1-hour session explaining HK salaries tax basics, allowances, and annual obligations clearly.
So you understand your own tax affairs from year one
How It Works
Initial Assessment
30 minsWe review your income, employment records, and any IRD forms you have received.
Allowance & Deduction Review
30 minsWe identify your applicable allowances, MPF deductions, and self-education expenses.
Return Completion & Review
1โ2 hoursWe complete your BIR60 and walk you through every line so you understand it.
Filing & Future Planning
1 dayWe file your return and brief you on provisional tax and the following year's obligations.
Case Studies
University student working 3 days a week in retail
- โขAnnual part-time income HKD 88,000
- โขBelow basic allowance โ nil tax payable
- โขHad received BIR60 but ignored it (nearly 3 months past deadline)
- โขLate filing penalty waived with first-offence explanation
โI had no idea I still had to file even with no tax to pay. TAX.hk sorted the late filing and got the penalty waived.โ
First-year analyst with self-funded MBA
- โขGraduate salary HKD 360,000
- โขPart-time MBA tuition HKD 95,000 paid personally
- โขSelf-education deduction HKD 95,000 claimed
- โขCombined with basic allowance: assessable income reduced to HKD 233,000
โMy tax bill dropped from HKD 55,000 to just HKD 10,000 thanks to the self-education deduction I didn't know about.โ
Frequently Asked Questions
I am a student working part-time. Do I need to pay salaries tax?
Not if your total income is below HKD 132,000 for 2025/26 (the basic personal allowance). However, if the IRD sends you a BIR60 form, you must file it regardless โ you simply declare your income, claim your allowance, and show nil tax payable. You are not exempt from filing, just from paying tax at low income levels.
Can I deduct my university tuition fees?
Yes, if you are paying the tuition yourself. Under s.12(1)(f) of the IRO, "self-education expenses" of up to HKD 100,000 per year are deductible. The course must be related to your current or prospective employment and provided by a recognised institution. Full-time degree programmes as well as part-time professional qualifications can qualify.
What is provisional tax and why is my second-year tax bill so large?
In your second year of employment, the IRD collects two amounts in one demand: (1) the balance of actual salaries tax for the current year, and (2) provisional tax for the NEXT year, calculated at roughly the same amount. This means your second tax bill is typically around 1.5x to 2x what you expected. It is not double-charging โ the provisional amount is credited against next year's final assessment.
I started working in October but the tax year runs April to March. How is my first year assessed?
HK's tax year runs from 1 April to 31 March. If you started in October, your first assessment covers October to 31 March โ approximately 6 months of income. You claim a full year's worth of personal allowances against this partial-year income, which typically means no tax in your first year. From April of the following year, you are assessed on a full year of income.
My employer contributes to my MPF. Can I claim anything?
You can deduct your own mandatory contributions to MPF (5% of your salary up to HKD 1,500/month). Your employer's contributions are not income to you and do not need to be declared. The maximum annual deduction for employee mandatory MPF contributions is HKD 18,000.
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