Stop Overpaying Salaries Tax.
We Find Every Dollar You're Owed Back.
Hong Kong's progressive salaries tax regime has 7 major deduction categories and a critical Personal Assessment election that most employees never claim. Our HKICPA-certified consultants systematically review your entire tax position — from BIR60 filing to provisional tax holdover — so you never leave money on the table.
Critical Deadlines & Common Mistakes — Don't Miss These
- BIR60 Deadline: 2 May each year. Missing it triggers a penalty of up to HK$10,000 and possible prosecution under s.80(2) of the Inland Revenue Ordinance (IRO).
- Personal Assessment election must be claimed on BIR60 annually. It is NOT automatic. Many salaried employees earning under the standard rate threshold miss this election and overpay by HK$20,000–HK$80,000 per year.
- Provisional tax demand arrives ~1 month after assessment. If your income dropped this year, you have only 28 days from the date of the provisional tax note to apply for a holdover under s.63 of the IRO — or you must pay the full amount.
- Voluntary Tax Return (VTR): If you were absent from HK during filing season and missed BIR60, file voluntarily immediately — interest and penalties compound monthly.
Why Most HK Employees Overpay Their Tax Bill
The IRD never volunteers deductions on your behalf. These are the five most expensive mistakes salaried employees make — and the financial consequences of each.
Missing the Personal Assessment Election
Personal Assessment (s.41 IRO) can cap your effective tax rate at 15% and consolidate all income. Most employees earning HK$500K+ should elect this every year but don't know it exists.
Cost: HK$20,000–HK$80,000 overpaid per yearUnclaimed Home Loan Interest
Under s.26E, you can deduct mortgage interest up to HK$100,000/year for up to 20 assessment years. Many taxpayers fail to claim all years or submit the wrong property documentation.
Cost: Up to HK$17,000 per year in lost reliefNot Maximising TVC Deductions
Tax-deductible Voluntary Contributions (TVC) to MPF allow an additional HK$60,000/year deduction on top of mandatory contributions. Few employees proactively structure this allowance.
Cost: HK$8,500–HK$10,200 per year unclaimedSelf-Education Expenses Overlooked
Under s.26C, courses, professional exams, and continuing education expenses up to HK$100,000/year are deductible. Many professionals either miss this or claim ineligible courses.
Cost: HK$14,000–HK$17,000 per year unclaimedWrong Provisional Tax Treatment
Provisional salaries tax is ~75% of your prior year assessment. If your income fell, changed employer, or you left HK, you may be entitled to a holdover under s.63 — but must apply within 28 days.
Cost: Overpaying provisional tax by HK$30,000–HK$150,000Built for HK's Professional & High-Income Earners
Our salaries tax service is designed for employees where the financial stakes of optimisation are highest — typically those earning HK$300,000 to HK$3,000,000 per year.
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Banking & Finance Professionals Complex income from base salary, bonuses, stock awards, and carried interest. We correctly classify each component to minimise assessable income.
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Expats & Cross-Border Employees Arrival/departure clearance, time-apportionment claims for days worked outside HK, and treaty relief under Hong Kong's DTAs. We handle complex residency situations.
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Medical, Legal & Accounting Professionals Self-education deductions for CPD requirements, professional subscriptions, and exam fees. We ensure every professional expense is correctly claimed.
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Senior Executives & Directors Benefits-in-kind (housing, car, club memberships), share options, and equity awards require precise IRD valuation. Incorrect treatment triggers costly assessments.
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Property-Owning Employees Coordinate rental income under Property Tax, Personal Assessment elections, and mortgage interest deductions across multiple properties for the optimal tax outcome.
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Dual-Income Couples Married couples often benefit from filing separately vs. jointly depending on income levels. We model both scenarios and elect the most favourable option.
A Complete Salaries Tax Filing Service
Every engagement includes a full review of your tax position — not just form-filling. Here is exactly what we do for you.
Full Deduction Audit
We systematically review all 7 IRD-recognised deduction categories: MPF mandatory contributions (HK$18,000/yr), home loan interest (HK$100,000/yr), TVC (HK$60,000/yr), self-education expenses (HK$100,000/yr), approved charitable donations (35% of assessable income), elderly/disabled residential care expenses, and qualifying annuity premiums (HK$60,000/yr combined with TVC).
Personal Assessment Election
We calculate whether electing Personal Assessment under s.41 of the IRO reduces your overall tax burden. For many employees with business losses, rental income, or multiple income sources, this election is transformative — often saving HK$30,000–HK$80,000 annually.
BIR60 Preparation & Filing
Accurate, IRD-compliant preparation of your annual salaries tax return. We handle all supplementary forms, attachments, supporting schedules, and explanatory notes — and submit as your authorised representative so you don't need to attend the IRD personally.
Provisional Tax Holdover Applications
If your income decreased or your circumstances changed, we prepare and submit a s.63 holdover application within the 28-day window to suspend or reduce provisional salaries tax. We calculate the correct reduced amount and handle all IRD correspondence.
Expat & Departure Clearance
For employees leaving Hong Kong, the IRD requires an employer to withhold final salary payment pending tax clearance. We prepare and submit a Notice of Cessation (IR56G/IR56M), compute the final assessment, and liaise with the IRD to obtain clearance promptly — preventing unexpected withholding of your final paycheck.
Allowance Optimisation
We maximise all personal allowances — Basic Allowance (HK$132,000), Married Person's Allowance (HK$264,000), Child Allowances (HK$130,000 per child, first 9 children), Dependent Parent/Grandparent Allowances (HK$25,000–HK$50,000 each), Disabled Dependent Allowance (HK$75,000), and Single Parent Allowance (HK$132,000).
Amended Return Filing
Did you file your own return and miss deductions? We review prior years (up to 6 years under the IRO) and prepare amended assessments to reclaim overpaid tax. We handle the full correspondence with the IRD Objections Branch, including attending hearings if required.
IRD Query & Objection Handling
If the IRD queries your return or raises an assessment you disagree with, we respond on your behalf within the statutory timeframe. We prepare technical objections, negotiate settlements, and represent you before the Board of Review if necessary — all included for our annual clients.
How We File Your Salaries Tax Return
A structured, predictable process so you know exactly what happens at every stage — with typical timeframes for each step.
Initial Consultation & Document Checklist
We schedule a 30-minute call to understand your employment situation, income sources, and potential deductions. You receive a personalised document checklist covering: IR56B/IR56E employer statements, mortgage statements, MPF/TVC contribution records, educational expense receipts, and charitable donation certificates.
Day 1 — Free, no obligationDocument Collection & Income Review
You upload documents to our secure client portal. Our tax consultant performs a comprehensive income review — verifying all employment income, benefits-in-kind (housing, car, stock options), and identifying every claimable deduction. We contact your employer's payroll team directly if any documents are missing.
Days 2–3 after documents receivedTax Optimisation Modelling
We model your tax position under both standard salaries tax assessment and Personal Assessment to identify the lower outcome. For married clients, we also model joint vs. separate assessment scenarios. We present a clear comparison showing your optimised tax liability versus what you would have paid without our service.
Days 3–4BIR60 Preparation & Client Review
We prepare your completed BIR60 return with all supporting schedules and attachments. You receive a draft for review with a plain-English explanation of every line item, deduction claimed, and allowance elected. We walk you through the return on a brief call and incorporate any corrections.
Days 4–5Filing & IRD Submission
We submit your return electronically as your authorised IRD representative, well before the 2 May deadline (or extension deadline if applicable). You receive confirmation of submission and a copy of the filed return for your records. If a provisional tax holdover is warranted, we submit the s.63 application simultaneously.
Day 5 — typically 5 working days from document receiptAssessment Review & Ongoing Support
When the IRD issues your Notice of Assessment (typically 2–4 months after filing), we review it against our filed return to ensure accuracy. If the IRD has disallowed any claim incorrectly, we file an Objection on your behalf within the 1-month statutory period. Our annual clients receive year-round support for any IRD correspondence.
Ongoing through the assessment yearReal Client Outcomes — Real HK$ Savings
These are representative case studies based on real client engagements. Identifying details have been modified to protect client confidentiality.
Mid-Level Banker, Wanchai — 3 Years of Self-Filed Returns Reviewed
- Client: VP at a regional bank, annual income HK$1.2M (salary + discretionary bonus)
- Had self-filed BIR60 for 3 consecutive years, never elected Personal Assessment
- Owned a Kowloon apartment with HK$95,000/year in mortgage interest — never claimed
- Completed a Level 3 CFA programme costing HK$85,000 — never claimed under s.26C
- Missed Dependent Parent Allowance for elderly parent residing in HK
- Personal Assessment election reduced effective rate from 17% to 15% — saving HK$24,000/year alone
We filed amended assessments for all 3 years simultaneously. The IRD accepted all claims and issued a combined refund cheque within 6 weeks. Going forward, the client's annual tax bill is reduced by approximately HK$29,000 per year.
European Executive Leaving HK — Unexpected Tax Assessment Averted
- Client: European CFO, leaving HK after 6 years, total compensation HK$2.8M
- Employer issued IR56G (notice of cessation) — IRD issued a "No Objection" letter requirement
- IRD's initial assessment included housing benefit incorrectly valued at market rent rather than the correct 10% of assessable income formula under s.9(2)
- Client also had days worked outside HK (Singapore and London trips) — properly time-apportioned to reduce HK assessable income
- Stock option vesting schedule created double-counting risk between current and prior assessment years
We reviewed the employer's IR56G, identified the housing valuation error, prepared a technical objection to the preliminary assessment, and computed the correct time-apportionment for non-HK workdays. The final tax bill was reduced by HK$180,000 from the IRD's initial estimate, and clearance was obtained in time for the client's scheduled departure.
Why Thousands of HK Professionals Choose TAX.hk
Across 2,400+ returns filed, our average client saves HK$42,000 per year compared to self-filing. For high earners, the figure is often over HK$100,000.
We look back up to 6 years to identify unclaimed deductions. One review session can unlock years of overpaid tax — all refunded with compound interest at 1% per annum from IRD.
If our error results in a penalty, we cover it. Every return is reviewed by a second qualified HKICPA member before submission. You are protected.
We understand professionals are busy. Our streamlined document portal and dedicated consultants mean your return is filed within 5 working days of receiving complete documents.
What You Get With TAX.hk vs Filing Yourself
The cost of professional tax filing is almost always less than the cost of the deductions you miss without it. Here is a direct comparison for a typical HK$800K salaried employee.
| Factor | Self-Filing (DIY) | TAX.hk Professional |
|---|---|---|
| Personal Assessment election modelled & filed | Often missed — not automatic | Every year, optimised |
| All 7 deduction categories reviewed | Typically 2–3 claimed | All 7 systematically checked |
| Provisional tax holdover application | Rarely applied for | Submitted where applicable |
| Retroactive amended returns (up to 6 years) | Most taxpayers unaware this is possible | Reviewed & filed as standard |
| IRD query & objection handling | Must handle yourself | Fully managed, authorised representation |
| Expat time-apportionment & departure clearance | Complex — high error risk | Expert handling, IRD clearance obtained |
| Benefits-in-kind valuation (housing, car, stock) | Often over-valued, excess tax paid | IRO-formula valuations applied correctly |
| Time investment (hours per year) | 8–15 hours of personal time | 30 minutes to supply documents |
| Typical annual tax saving vs unaided filing | — | HK$25,000–HK$100,000+ |
| Professional fee (annual filing) | HK$0 | From HK$3,800/year |
What Our Clients Say
"I'd been filing my own BIR60 for 8 years thinking I was doing it right. TAX.hk's review found HK$52,000 in unclaimed deductions I had no idea I was entitled to — including 4 years of home loan interest I'd missed entirely. The amended return process was painless and the refund arrived in less than 2 months."
"As a French national who has worked in HK for 3 years, I was terrified of the tax system. TAX.hk handled everything — my BIR60, the time-apportionment for my Hong Kong/Paris split role, and my departure clearance when I relocated. They saved me from an HK$90,000 assessment error and I recommend them to every expat colleague."
"My employer offers a very generous housing benefit and I always assumed it was fully taxable. TAX.hk showed me that under s.9(2) of the IRO, only 10% of my assessable income is attributed to this benefit — not the market rent value. That one correction saved me HK$38,000 this year. Completely professional and fast."
Salaries Tax Filing — Frequently Asked Questions
Hong Kong salaries tax is levied at progressive rates on your net chargeable income (assessable income minus allowances). The progressive rates are:
- First HK$50,000 of net chargeable income: 2%
- Next HK$50,000: 6%
- Next HK$50,000: 10%
- Next HK$50,000: 14%
- Remainder: 17%
However, your total salaries tax cannot exceed the Standard Rate of 15% applied to your total assessable income (before allowances). For most high earners, the Standard Rate is more favourable — and Personal Assessment election can also consolidate all income sources at the 15% cap where beneficial.
The BIR60 (individual tax return) is due on 2 May each year for the preceding assessment year (1 April – 31 March). If you have a tax representative (such as TAX.hk), we can often obtain extended deadlines.
Missing the deadline without reasonable excuse can result in:
- A HK$10,000 penalty under s.80(2) of the IRO
- Additional tax at treble the undercharged amount if the IRD raises an estimated assessment
- Possible prosecution for wilful non-compliance
If you have missed a filing, contact us immediately — a voluntary, late-filed return is treated far more leniently than one filed after IRD enforcement action begins.
Personal Assessment is a special election under s.41 of the IRO that consolidates all sources of income (salaries, business profits, property income) into a single assessment taxed at progressive rates — with the overall tax capped at 15% of total income.
You may benefit from Personal Assessment if:
- You have business losses you wish to offset against employment income
- You have rental income from properties
- You have self-employed income in addition to employment income
- Electing Personal Assessment allows you to claim home loan interest deductions (which are only available under Personal Assessment for sole proprietors and partners)
The election must be made within 6 years after the end of the assessment year. It must be elected annually — it is not automatically continued from year to year. We model this election for every client as standard.
Mandatory MPF contributions are deductible up to HK$18,000 per assessment year (calculated as 5% of monthly income capped at HK$30,000, giving a maximum mandatory contribution of HK$1,500/month × 12 months = HK$18,000).
In addition, Tax-deductible Voluntary Contributions (TVC) allow an additional deduction of up to HK$60,000 per assessment year. This is separate from and in addition to the mandatory contribution deduction. TVCs must be placed in a designated TVC account within your MPF scheme — they cannot be withdrawn until retirement age (65).
Qualifying annuity premiums (from HKIA-approved products) share the HK$60,000 cap with TVC contributions. Both together cannot exceed HK$60,000. We advise clients on the optimal allocation between TVC and qualifying annuity premiums to maximise the deduction.
Yes — under s.26E of the IRO, you can deduct home loan interest for your principal place of residence in Hong Kong, subject to:
- Maximum deduction: HK$100,000 per assessment year
- Maximum duration: 20 assessment years (not necessarily consecutive)
- The property must be your principal place of residence during the year of assessment
- The loan must be secured by a mortgage on the property from an approved lender
- The deduction is not available if you are receiving a housing benefit or rental reimbursement from your employer for the same property
Many clients miss this deduction in early years of ownership, then run out of their 20-year entitlement. If you have unused years, you can sometimes claim retrospectively.
Under s.26C of the IRO, you may deduct self-education expenses up to HK$100,000 per assessment year. Qualifying expenses include tuition fees, examination fees, and course materials for courses that are:
- Undertaken to gain a qualification for use in your current employment
- Undertaken to improve skills required in your current employment
- Provided by an approved educational institution or professional body
Eligible courses include CFA, ACCA, CPA, MBA programmes (if work-related), legal professional qualifications, engineering certifications, medical CPD courses, and many others. The course must be relevant to your current — not a prospective — employment. We assess eligibility for each course on a case-by-case basis.
No. Under s.8(1A)(b) of the IRO, if you perform services both inside and outside Hong Kong for the same employer, only the portion attributable to services rendered in Hong Kong is assessable. This is calculated by time-apportionment — the ratio of days worked in Hong Kong to total working days globally.
The key requirements are:
- Your employer must be based outside Hong Kong, or the salary must be sourced (paid from) outside Hong Kong
- You must be able to demonstrate days worked outside HK with travel records, expense claims, meeting records, etc.
- The IRD scrutinises these claims carefully — professional support is essential
For a senior executive earning HK$3M with 30% of their working days outside Hong Kong, this can reduce the taxable portion by HK$900,000 — saving HK$135,000 in salaries tax.
If your employer provides you with accommodation or pays your rent directly, the benefit-in-kind is assessed under s.9 of the IRO. The assessable value is the lower of:
- The actual rental value of the accommodation, or
- A fixed percentage of your assessable income (excluding the housing benefit itself): typically 10% for a flat, 4% for a hotel room or serviced apartment, or 8% for other living quarters
Many employers incorrectly report the full market rent on the IR56B, leading to over-assessment. We verify the correct formula is applied, which can save HK$20,000–HK$80,000 annually for executives in luxury accommodation.
Yes — under s.26D of the IRO, approved charitable donations made to Inland Revenue-approved charities (those with s.88 exemption status) are deductible. The rules are:
- Minimum donation: HK$100 per eligible institution
- Maximum deduction: 35% of your net assessable income (after deductions, before allowances)
- Donations must be evidenced by official receipts from the approved charity
- The charity must hold s.88 exemption status — donations to non-approved organisations are not deductible
Common approved charities include Community Chest of Hong Kong, the Hong Kong Red Cross, Oxfam Hong Kong, universities, and registered charities listed on the IRD website.
If the IRD raises an assessment that you believe is incorrect, you have the right to object within 1 month of the date of the Notice of Assessment. The objection must be in writing and specify the grounds of objection.
The process is:
- Step 1: File a written Objection to the Assessor within 1 month (s.64 IRO)
- Step 2: The Assessor reviews the objection and may request additional information or arrange a meeting
- Step 3: If the Assessor maintains the original assessment, you may appeal to the Commissioner of Inland Revenue (s.66 IRO)
- Step 4: If unsatisfied with the Commissioner's decision, you may appeal to the Board of Review — an independent judicial body
- Step 5: Further appeal to the Court of First Instance is available on points of law
TAX.hk acts as your authorised representative throughout this process. Our HKICPA members and tax advisors have extensive experience in negotiating with IRD Assessors and representing clients before the Board of Review.
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