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Provisional Tax Refund When Not Earning Income in Hong Kong

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  1. #1

    Join Date
    Feb 2022
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    Provisional Tax Refund When Not Earning Income in Hong Kong

    Hello everyone,

    I have a question about provisional tax in Hong Kong and whether I can get a refund in my situation.

    If I plan to quit my job in May, my income for the next tax year in Hong Kong will be lower than the minimum required to pay any tax on 2024/2025. However, this year (2023/2024) I will have to pay the full amount, which includes the provisional tax.

    Given that I know for a fact that I won't have income in Hong Kong next year because I will be working in Macau, will I be able to get a refund on the provisional tax I'm about to pay in next few months?

    I would greatly appreciate any insights or experiences from the community regarding this situation.

    Thank you in advance for your help!


  2. #2

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    Don't pay the provisional. Send the IRD an email to explain your situation and see what they come up with.

    They will ask for proof.. may be a job offer or reduced income or resignation etc ...

    It is handled fairly and quickly.

    adisakau likes this.

  3. #3

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    Hi Shri,

    Thanks a lot for sharing.

    I havn't recieved the notification for tax return yet, but I'll send them email after I send them tax return.


  4. #4

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    Yes, I would request a reassessment of any provisional tax assuming you don't have any accumulated taxes between now and the payment date.

    Not too sure how it will work in your case.. but if you have your timelines in order you should be fine.

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  5. #5

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    In general, after you get a tax bill (usually june/july) the date of final tax to be paid is in April following year (2025).
    So after you get your tax bill, and assuming you have tendered your resignation, write in and ask for reassessment for the provisional tax. You have ample time to get that sorted out before the actual payment.

    You did not put it clear if you are under GEP or if you are a HK PR. If you are under GEP technically when you resign your company would have asked you to close out your tax bill before releasing your final pay. Once you close out the tax bill the provisional tax issue should not apply as well.

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  6. #6

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    Feb 2022
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    Thanks for your reply. I'm PR. Does it mean I could send email to explain my situation anytime before payment date?


  7. #7

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    You can always send email and flag the problem. IRD is quite responsive (albeit very slow) and they are not unreasonable. If you show them resignation letter and your employment in Macau, i am sure they won't insist you pay the provisional tax...

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  8. #8

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    Thanks for suggestion!


  9. #9

    Join Date
    Feb 2009
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    You can apply to holdover the provisonal tax on the grounds that you have ceased to derive income chargeable to salaries tax, or if your income is less than 90% of your income in previous year.

    To apply, just fax your application form IR1121 to 2519 6896

    https://www.gov.hk/en/residents/taxe...rovisional.htm

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  10. #10

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    Quote Originally Posted by bdw:

    To apply, just fax your application form IR1121 to 2519 6896
    Be glad that IRD is one of the few govvy org that, 1. allows email correspondences, 2. allows e-payment.
    adisakau likes this.

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