Hong Kong – Application for Holdover of Provisional Profits Tax FAQ
Q1: What are the ground for holding over of provisional profits tax?
A: You may apply for holding over of provisional profits tax if:
- Your assessable profits for the year of assessment are, or are likely to be, less than 90% of the assessable profits for the year preceding the year of assessment or of the estimated sum in respect of which you are liable to pay provisional profits tax.
- The amount of any loss brought forward for set off to that year of assessment has been omitted or is incorrect.
- You have objected to your assessment for profits tax for the year preceding the year of assessment for which provisional tax was charged.
Q2: Do I need to submit supporting documents for proving my estimated assessable profits for this year less than 90% of that for the preceding year?
A: Yes. Supporting documents including properly signed draft accounts covering a period of not less than 8 months should be submitted together with the application.
Q3: What is the deadline for making a holdover application?
A: Your application for holding over of provisional tax should be lodged not later than:
- 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.
Q4: Can I apply for holding over of provisional tax for the second instalment of tax amount if I have already settled the first instalment before the due date?
A: Yes. You can apply for holding over of provisional tax of the second instalment subject to grounds for application (Answer 1) and the prescribed time limit (Answer 3).
Q5:How can I lodge the application for holding over of provisional tax?
Your application for holding over of provisional tax must be made in writing. You may download the Form IR1121 and complete the relevant parts of the Form and return it to the Inland Revenue Department.
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