Get-smart appeal as taxing season begins

Some 2.44 million taxpayers will receive their individual tax returns - nicknamed "green bombs" - for 2023/24 starting May 2, the Inland Revenue Department announced.

The department also sent out 650,000 tax returns to 220,000 business operators for profit tax, 120,000 landlords for property tax and 310,000 employers.

Taxpayers are reminded to submit returns within a month of its issuance.

The department urged the public to file tax returns through its eTAX electronic service, which allows individuals to use the government's "iAM Smart" digital services to log in and sign tax returns.

"The department has gradually enhanced the functions of electronic tax filing to promote tax digitalization and to enhance the efficiency, reliability and accuracy of return filing," the department said, adding that taxpayers could visit its website for frequently asked questions and answers on how to complete tax returns.

Guidance on electronic filing for employer's returns is also available on the department's website.

Last year the IRD launched a new electronic model for filing profit tax returns, where taxpayers can e-file the returns together with supporting documents like financial statements and profits tax computations in the inline eXtensible Business Reporting Language (iXBRL) format.

"To facilitate taxpayers in preparing the required iXBRL data files, the department has provided the IRD Taxonomy Package and the IRD iXBRL Data Preparation Tools, which are available for download from the website free of charge," the department said.

"The taxonomy and tools have been updated and enhanced this year. Enhanced features include a roll-over function and increasing the gross income threshold for the use of Template Tool from HK$2 million to HK$5 million," it added.

It has also launched a traditional Chinese edition of the taxonomy and tools, enabling taxpayers to convert financial statements and profit tax computations compiled in traditional Chinese into iXBRL data files.

Taxpayers and employers have to pay sufficient postage on returns to ensure timely delivery, as underpaid mail items will not be accepted by the department.

They are required to complete tax returns within one month from the date of issuance. As for cases with appointed tax representatives, the deadlines for filing returns are set out in the Block Extension Letter posted on the department's website.

wallis.wang@singtaonewscorp.com