A:

The legislation is applicable to the year of assessment commencing on 1 April 2024 and to all subsequent years of assessment.

A:

The additional deduction of domestic rent is not applicable to the year of assessment 2023/24. You should file your Tax Return – Individuals (BIR60) for the year of assessment 2023/24 as usual. The maximum allowable amount of domestic rent for the year of assessment 2023/24 remains $100,000. If you reside with that child in Hong Kong and pay the same amount of rent in the year of assessment 2024/25, the increased deduction ceiling amount of domestic rent that you can use for that year of assessment has been increased to $120,000.

A:

As long as the prescribed conditions are satisfied, you will be allowed increased deduction of home loan interest or domestic rent at a maximum amount of $120,000 for the year of assessment 2024/25 and after if you reside with that child in Hong Kong in the relevant year of assessment, and until that child reaches the age of 18. As for the allocation of the relevant deduction between owners and between tenants, there will be no change to the allocation rules.

A:

A taxpayer is still eligible to elect for using the additional deduction ceiling amount if he / she resides with his / her child in Hong Kong for a shorter period that the Commissioner of Inland Revenue considers reasonable in the circumstances. For instance,

1. in the year of assessment during which the child is born (i.e. born in the second half of the relevant year of assessment);
2. the child studies abroad or studies in a boarding school in Hong Kong, and resides with the taxpayer in Hong Kong when the child is on vacation;
3. the child resides with the taxpayer for a shorter period of time due to family arrangement, for example,
   1. the taxpayer is required to work outside Hong Kong frequently;
   2. the child’s grandparents look after and reside with the child during weekdays, and the child returns home to reside with the taxpayer during weekends;
4. in the year of assessment during which the child has been hospitalized for a period of time;
5. in the year of assessment during which the taxpayer departs from Hong Kong for a period of time with his / her child (for example, they leave Hong Kong in the first half of the relevant year of assessment);
6. for divorce cases, where
   1. the custodian order is granted to the ex-spouse and the child resides with the ex-spouse for most of the time but occasionally resides with the taxpayer;
   2. joint custodian order is granted to the taxpayer and ex-spouse, and the child resides with them in turn.

Generally speaking, in determining whether a shorter residing period is reasonable, the totality of facts of the case has to be considered.

A:

No, you do not need to furnish documentary evidence to support your deduction claims at the time of filing your Tax Return – Individuals (BIR60). You should retain the documents for a period of 6 years after the expiration of the relevant year of assessment so that you are able to provide them to the Assessor for review when requested.

A:

Each taxpayer is entitled to claim the basic deduction of home loan interest for an aggregate of 20 years of assessment; and the additional deduction of home loan interest for an aggregate of 19 years of assessment, whether continuous or not.

The deduction for home loan interest will not be allowable to a taxpayer if the basic deduction has been allowed for 20 years of assessment, regardless of whether any additional deduction has been allowed for any of those 20 years.

A:

There is no limit in the number of years that a taxpayer can claim the basic deduction of domestic rent. However, each taxpayer is only entitled to claim the additional deduction of domestic rent for an aggregate of 19 years of assessment, whether continuous or not.

A:

No. If you are prepared to claim the additional deduction, the amounts of interest / rent which you paid must exceed the basic deduction ceiling amount. It follows that you have to claim the basic deduction and the additional deduction at the same time.

A:

Sure, you can.

A:

Yes. If the additional deduction has been allowed but you are prepared to revoke the claim for that deduction, you should revoke the election for the additional deduction ceiling amount in writing within 6 months after the date of the notification issued by the Commissioner of Inland Revenue. If the election is revoked, the claim is deemed not to have been made. The year of assessment to which the revocation relates will not be counted as one of the years of assessment with election made for the additional deduction ceiling amount.

A:

You should (a) state the actual amount paid of $150,000 in Part 8.4 of your Tax Return – Individuals (BIR60) for the year of assessment 2023/24; (b) fill in the details of that child, including his / her date of birth, in Part 11.2 of that tax return. The Assessor will allow the increased deduction of $120,000 when computing your provisional salaries tax for the year of assessment 2024/25. Alternatively, you may apply in writing for holding over of the provisional salaries tax charged for that year of assessment after receiving the notice of salaries tax assessment. The time limit for the application is 28 days before the due date for payment of the provisional tax, or 14 days after the date of issue of the notice for payment of the provisional tax, whichever is later.

A:

As no information in respect of that new born child is to be reported in your Tax Return - Individuals (BIR60) for the year of assessment 2023/24, you should apply in writing for the holding over of the provisional salaries tax charged for the year of assessment 2024/25 after receiving the notice of salaries tax assessment and provide (a) the estimated amount of home loan interest payable for the year of assessment 2024/25; and (b) the details of that child, including his / her date of birth. The time limit for the application is 28 days before the due date for payment of the provisional tax, or 14 days after the date of the notice for payment of the provisional tax, whichever is later.