An introductory guide to Hong Kong’s electronic tax filing system: step-by-step instruction for first-time tax filers

Filing taxes in Hong Kong for the first time and unsure where to begin with your tax return? With the launch of the new Individual Tax Portal (ITP) by the Hong Kong Inland Revenue Department in July 2025, tax filing has been transformed from a tedious administrative chore into a streamlined digital experience. This comprehensive guide will walk you step-by-step through Hong Kong's electronic tax filing system, ensuring you report accurately, claim all eligible deductions, and confidently meet all critical deadlines.

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Understanding Hong Kong's New Individual Tax Portal (ITP)

On July 22, 2025, the Hong Kong Inland Revenue Department officially launched three new electronic tax platforms, with the Individual Tax Portal (ITP) serving as a major upgrade to the legacy system. This one-stop platform provides taxpayers with a centralized, mobile-compatible solution to handle all personal tax matters, including filing tax returns, updating personal particulars, and viewing their tax status in real time.

The ITP embodies Hong Kong's commitment to advancing digital government services, offering enhanced security features, an improved user experience, and seamless integration with "iAM Smart", Hong Kong's digital identity system. For first-time filers, understanding how to navigate this system is key to fulfilling your tax obligations accurately and on time.

Why Is the ITP So Important for First-Time Filers?

As a first-time filer, you are starting with a blank canvas. The ITP's intuitive design and guided process make it much easier to understand what information to provide, which deductions you can claim, and how to avoid common mistakes. The system automatically computes your tax payable under both progressive tax rates and the standard rate, ensuring you pay the lowest amount required by law.

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Step 1: Account Registration and Setup

Understanding Your Registration Options

Before starting registration, it is essential to understand that different categories of users have different login methods:

Registration Process for New Users

If you are a first-time user without "iAM Smart" or a digital certificate, please follow these steps:

1. Go to the ITP login page: Visit the official "eTAX" website at https://etax.ird.gov.hk
2. Select "New Registration": Click the "New Registration" button on the login page
3. Enter personal information: Provide your Taxpayer Identification Number (TIN), Hong Kong Identity Card (HKID) or passport number, and contact details
4. Choose delivery method for Activation Passcode: Select to receive the activation passcode by post (sent to the correspondence address in the Inland Revenue Department's records) or via SMS (sent to the registered mobile phone number)
5. Submit registration: Complete and submit the registration form
6. Wait for the Activation Passcode: The Inland Revenue Department will issue the activation passcode within 2 working days. If not received, you may contact the IRD at +852 183 2011
7. First-time login: Upon receiving the activation passcode, return to the ITP login page and log in using your Taxpayer Identification Number (TIN) and activation passcode
8. Set password: Upon your first login, the system will prompt you to set a permanent password for future use

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Completing the BIR60 Tax Return: A Step-by-Step Guide

The BIR60 is the Tax Return - Individuals issued annually by the Inland Revenue Department to individuals earning income in Hong Kong. For the 2026/27 year of assessment, tax returns will be issued in early May 2027, with a filing deadline within 1 month from the date of issue (or 2 months for electronic filing due to an automatic extension).

Preparation: Gathering Required Documents

Thorough preparation is the key to accurate and efficient filing. Please gather the following documents before starting:

Step-by-Step Electronic Filing Process

Step 1: Accessing the Tax Filing Interface

1. Log in to ITP using your chosen authentication method.
2. Click "Submit Tax Return" on the homepage.
3. Select "Submit Tax Return - Individuals (BIR60)".
4. Confirm the year of assessment (currently 2026/27).

Step 2: Declare Employment Income

Enter your income details according to your Form IR56B. Declare your total salary, including base salary, bonuses, commissions, housing allowances, and other cash allowances. If you had more than one employer during the year, please add them one by one. The system will automatically calculate your total assessable income.

Step 3: Claim Deductions (2024/25 Maximum Limits)

The pre-filling function in ITP is particularly useful here. If you have previously saved your deduction information, the system will populate it automatically. Please review carefully and update as necessary:

Step 4: Claim Personal Allowances

Based on the personal information you verified earlier, the system will guide you to claim the applicable tax allowances:

Step 5: Review Estimated Tax Calculation

Click "Compute Tax" to view your estimated tax payable. The system will calculate based on progressive tax rates and standard tax rates separately:

Standard Rate (from 2024/25 onwards): The first HK$5,000,000 of net assessable income (after deductions) is taxed at 15%, and the portion exceeding HK$5,000,000 is taxed at 16%. The Inland Revenue Department will automatically assess your tax using whichever calculation results in a lower tax payable.

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Common Mistakes in First-Time Tax Filing and How to Avoid Them

Income Reporting Errors

• Mistake: Failing to report all sources of income, especially part-time jobs or consultancy fees.
• Solution: Report all Hong Kong-sourced income earned during the year of assessment, even if the employer did not withhold tax on your behalf.
• Mistake: Forgetting to report non-cash fringe benefits (housing, car allowances).
• Solution: Carefully cross-check your Form IR56B; employers are required to report all benefits.

Deduction Claim Errors

• Mistake: Claiming amounts exceeding the maximum allowable deduction limits.
• Solution: Review the deduction cap table above before submitting.
• Mistake: Claiming charitable donations without proper receipts.
• Solution: Only claim donations made to charitable organizations recognized by the Inland Revenue Department, and retain receipts for 7 years.
• Mistake: Not understanding the 35% cap on charitable donations.
• Solution: Calculate 35% of your assessable income after other allowable deductions – even if you donated more, the claim amount cannot exceed this percentage.

Filing Deadline Errors

• Mistake: Missing the deadline despite the automatic extension for electronic filing.
• Solution: Submit the BIR60 as soon as you receive it; do not wait until the last minute.
• Mistake: Failing to notify the Inland Revenue Department (IRD) when earning assessable income but not receiving a tax return.
• Solution: If you earn assessable income in the 2026/27 year of assessment but have not received a BIR60 tax return, you must notify the IRD in writing on or before 31 July 2027.

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Record Keeping Requirements

Under the Hong Kong Inland Revenue Ordinance, you must retain all tax-related records for a period of 7 years from the end of the relevant year of assessment. For the 2026/27 year of assessment, this means records must be kept at least until 31 March 2034.

Filing taxes in Hong Kong for the first time does not have to be daunting. The "Individual Tax Portal" platform is designed to guide you through every step with clear instructions and useful features. By starting early, staying organized, and taking advantage of electronic filing, you can minimize stress while ensuring accurate compliance. Remember, the Inland Revenue Department offers various support channels to assist you; for complex situations, consulting a qualified tax professional can provide valuable peace of mind.