2024 Tax Season Guide

Tax Payment Methods: (In-person, online, PPS, FPS, e-wallet and phone)

As the Hong Kong tax season rolls in, many have received their tax notices and are planning their payment strategies. This article covers various common tax payment methods, including step-by-step guides for tax instalment payments and important considerations to help you find the most suitable way to navigate your taxes.

How to pay your taxes? Check out these three key methods:

Pay-in-person (ATMs, convenient stores and post offices)

• Bank automated teller machine (ATM） At any major bank ATM, just select “Bill Payment,” then choose bill payment type (if applicable “Tax Demand Note”) and input the recipient account number with the tax amount to complete your transaction.
• Convenient stores 7-Eleven, Circle K Convenience Store, VanGo and U-Select offer tax payment services. Simply visit any of these outlets, present your tax notice with a barcode and pay in cash. Note that this method has a transaction limit of HKD5,000 per payment.
• Post offices You can also bring your tax notice to the post office and pay your taxes using cash, cheque, or EPS. Note that the daily cash payment limit for this method is HKD120,000.

Pay tax online [online banking, Faster Payment System (FPS), e-cheques/e-bills and e-wallets such as AlipayHK/WeChatPay]

• Online banking Log into your online banking account and select “Bill payment.”. Next, select the merchant category “Government or statutory bodies” and choose “Inland Revenue Department” as the merchant. Enter the bill details, including the bill type and the “E-payment reference number” specified on your tax bill to complete your tax payment online.
• Faster Payment System (FPS) Log into your bank’s mobile app, select the “FPS” page and scan the FPS QR code on your tax bill. Enter the merchant’s name, recipient account number and tax amount. After verifying the details, you can complete your tax payment online.
• E-cheques/E-bills To pay your taxes using e-cheque, visit the designated e-cheque payment website. Select Inland Revenue Department and the bill type, then enter your bill details and upload the e-cheque. When using this method, ensure the e-cheque/e-bill is addressed to the “Government of Hong Kong Special Administrative Region” and is issued in Hong Kong dollars. E-cheques/Bills older than 6 months will be considered expired. Each e-cheque/e-bill can cover up to 10 bills of the same category.
• E-wallet (AlipayHK and WeChat Pay) Log into AlipayHK or WeChat Pay, navigate to the “FPS” page and scan the QR code on your tax bill. Enter the necessary details and amount, then choose to pay using your account balance or credit card. Note that using a credit card for tax payments may incur additional fees which vary depending on your credit card provider.

Pay taxes by phone (PPS and phone banking)

• PPS (Payment by Phone Service) The PPS tax payment method involves two steps. First, call 18033 and enter your PPS password, then input the merchant code “10” for the Inland Revenue Department and your bill number to register the bill. Once registered, you can proceed with your tax payment using PPS.
• Phone banking Some banks offer tax payment services through their phone banking hotlines. Simply specify the merchant category, merchant name and bill type over the phone. Then provide your bill account number, debiting account and tax amount to complete the payment.

How do you know when are your taxes due ?

The Inland Revenue Department usually issues tax payment notices to taxpayers in October each year. These notices will indicate the tax payment due dates with the first instalment generally due in January and the second instalment in April of the following year.

What are the consequences of late tax payments?

If you fail to meet the tax payment deadline, a 5% surcharge will be imposed. If the tax remains unpaid for more than six months, an additional 10% surcharge will be incurred. The Inland Revenue Department may also take legal action which may involve issuing tax recovery notices, filing civil lawsuits and even imposing travel restrictions. Additionally, late tax payments may negatively impact your credit rating, causing it more difficult to obtain loans and credit services in the future. If paying taxes in a lump sum poses a challenge for you, consider the tax season loan products offered by major banks as a feasible way to ease your financial burden.

How can you apply for a tax payment instalment plan?

If you are temporarily unable to pay your taxes in full, you can apply for an instalment plan with the Inland Revenue Department. The application process for individuals is as follows:

1. Complete the instalment application form (IR1360 [insert link]).
2. Submit a payment proposal, copies of bank statements/passbooks from the past 3 months and details of your income and expenses for the past 3 months.
3. Once you have all the required documents, you can submit your instalment application in person, in writing or by fax.
4. The Inland Revenue Department will respond to your instalment application within 21 working days.

What are some ways to reduce your taxable income?

You can save on tax expenses by using the following deduction methods, each with its own maximum limit:

Tax deduction items	Tax deduction limits
Voluntary Health Insurance Scheme	Maximum deduction per insured person is HKD8,000
MPF (Mandatory contributions)	HKD18,000
MPF (Voluntary contributions)	Combined maximum deduction of HKD60,000
Tax deductible annuity
Self-education expenses	HKD100,000 (self-paid portion only)
Rental deductions	HKD100,000
Home loan interest	HKD100,000
Elderly residential care expenses	HKD100,000 per elderly person
Approved charitable donations	Eligible for donations exceeding HKD100, up to 35% of each donation

Your tax saving partner: Standard Chartered Personal Instalment Loan

Besides tax deductions, how can you save more on taxes? By using Standard Chartered’s tax season loan! Standard Chartered is now offering special tax season loan promotions. Apply for a Personal Instalment Loan and enjoy up to HKD18,000 in cash rebates, effectively saving you 15% on interest expenses.

How to apply for a loan to pay taxes?

Applying for a Standard Chartered Personal Instalment Loan to pay taxes is simple. Just submit your tax loan application online or via SC Mobile and you can get preliminary approval in as fast as 5 minutes. For more information about Standard Chartered Personal Instalment Loan, please visit the Standard Chartered’s tax season loan webpage.