Tax Payable

You may have heard Provisional Tax during the tax filing process but didn’t know much about it. After the tax assessment, the taxpayer needs to pay two instalments. Sometimes it is only when the tax is paid that it is discovered that the tax is more than the original tax payable. In fact, it is a provisional tax payment.


What is Provisional Tax?

According to the information of the Inland Revenue Department, Provisional Tax is a government requirement. The tax amount is calculated based on the taxpayer’s income in the previous tax year. And then calculated for 12 months and requires prepayment for the next tax. Part of the tax in the tax year.

When assessing the tax in the coming year, the tax will be deducted from the provisional tax of the current year. If there is still a balance, the provisional tax of that year will be used and offset in the next year of assessment.

Since the first-time tax payer does not have the provisional tax deduction for the previous year. So, you may have to bear the provisional tax for the next tax year.

How to settle a tax bill in Hong Kong?

Inland Revenue Department (IRD) will send you a payment vouchers by letter. Or send you an e-alert if you have registered a e-tax account. Then you can settle the bill either in person or electronic payment.

In Person

Post Offices

You can present the payment voucher and pay your IRD bills or purchase Tax Reserve Certificates at Post Offices by cash, cheque or EPS.

Convenience Stores

You can print the payment voucher barcode, then you can present the voucher and pay tax. For example, at any 7-Eleven Convenience Store, Circle K Convenience Store, VanGO Convenience Store and U select in Hong Kong.

By Post

You can send a crossed cheque to the commissioner of Inland Revenue. And make payable to “The Government of the Hong Kong Special Administrative Region”. Then write the reference number on the back of the cheque.

Electronic Payment

Tax payment accepts all kind of electronic means. You can pay your tax by telephone, Internet or bank Automated Teller Machine (ATM). 

Last but not the least, Hong Kong have so many simple and easy way to pay tax. And paying tax should be paid on or before the due date. If you denied to pay, IRD will take immediate action.

For further information, please contact us.

You may want to read: Tax Paying Form BIR51/BIR52: Using the same envelope to send correspondence for enquiries/claims and the tax return