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Relief measure on automatic extension of 2018/19 tax payment deadlines for 3 months
1.
Q:
As announced by the Chief Executive on 8 April 2020, deadline for payment of tax for the year of assessment 2018/19 that will be falling due in April to June 2020 will be automatically extended for 3 months. What types of demand notes are covered by the relief measure? Does the measure apply to both individuals and companies?
A:
The relief measure will only apply to Salaries Tax, Personal Assessment and Profits Tax demand notes for the year of assessment 2018/19. Apart from taxpayers who have to settle their tax liabilities before leaving Hong Kong, the relief measure applies to both individuals and companies.
2.
Q:
My Salaries Tax demand note for the year of assessment 2018/19 was due for payment in March 2020. Approval has been granted by IRD for the settlement of the demand note by monthly instalments and the first instalment has been settled according to the instalment arrangement. With the relief measure now announced, should I continue to pay the balance according to the arrangement?
A:
The relief measure is not applicable to 2018/19 demand notes due in March 2020 and before. The instalment plan previously granted has already taken into consideration your financial position and you should continue to pay according to the approved arrangement. Provided that the instalment plan for the settlement of your 2018/19 demand note is duly adhered to, no surcharge will be imposed for a maximum period of one year counting from the due date specified on the demand note.
3.
Q:
My Salaries Tax demand note for the year of assessment 2018/19 was due for payment in March 2020. I have applied for instalment settlement of the demand note but reply is still pending. Will the relief measure now announced affect my application?
A:
The relief measure does not cover 2018/19 demand notes due before April 2020. Your instalment application will not be affected. The IRD will approve or adjust your instalment proposal with regard to your financial position. Pending the reply from IRD, please make payment in accordance with your payment proposal. If instalment arrangement is approved for the settlement of your 2018/19 demand note and the arrangement is duly adhered to, no surcharge will be imposed for a maximum period of one year counting from the due date specified on the demand note.
4.
Q:
My Salaries Tax demand note for the year of assessment 2018/19 is due on 28 April 2020. I have applied for instalment settlement of the demand note but reply is still pending. Will the relief measure now announced affect my application?
A:
The relief measure applies to Salaries Tax, Personal Assessment and Profits Tax demand notes for the year of assessment 2018/19 that are falling due in April to June 2020. Under the relief measure, the tax payment deadline will be automatically extended to 28 July 2020. If your instalment application is approved, your first instalment payment will be payable on 28 July 2020. Provided that the tax demanded for the year of assessment 2018/19 can be fully paid in accordance with the instalment arrangement within one year from the due date specified on the demand note (i.e. on or before 28 April 2021), no surcharge will be imposed.
5.
Q:
My Salaries Tax demand note for the year of assessment 2018/19 is due in April 2020. The due date for payment should be automatically extended to July 2020 under the relief measure. If I have financial difficulties in meeting the tax payment in July 2020, can I apply for instalment payment?
A:
If you have financial difficulties in meeting the tax payment in July 2020, you can apply to the IRD for instalment settlement of your 2018/19 Salaries Tax demand note. IRD will approve or adjust your instalment proposal with regard to your financial position. Provided that you have duly adhered to the approved instalment arrangement for settlement of your 2018/19 Salaries Tax demand note, no surcharge will be imposed for a maximum period of one year counting from the due date specified on your demand note.
6.
Q:
IRD announced on 4 April 2020 that in view of the latest situation of COVID-19, deadlines for tax payments that fall between March 23 and May 2 are automatically extended to May 4. My Salaries Tax demand note for the year of assessment 2018/19 was due on 25 March 2020. Following the announcement, the deadline for payment should be automatically extended to 4 May 2020. Will the deadline for payment be further extended for 3 months to 4 August 2020 under the relief measure?
A:
The relief measure applies to Salaries Tax, Personal Assessment and Profits Tax demand notes for the year of assessment 2018/19 that are falling due in April to June 2020. As the payment due date as specified on your demand note was 25 March 2020, the relief measure is not applicable. Please settle the tax on or before 4 May 2020.