IRD Issues Profits Tax, Property Tax and Employer's Returns for 2025-26

IRD issues profits tax, property tax and employer's returns for 2025-26

The Inland Revenue Department (IRD) today (April 1) issued about 270 000 profits tax returns, 120 000 property tax returns and 340 000 employer's returns for the year of assessment 2025-26, and will issue about 2.77 million tax returns for individuals on May 4. Taxpayers and employers are generally required to file their returns within one month from the date of issue of the returns. For cases with tax representatives appointed, the deadlines for filing returns are set out in the Block Extension Letter on the IRD's website.

Photo by Bastille Post

The IRD encourages taxpayers to file their tax returns through eTAX. Individual users can use "iAM Smart" to log in and sign their tax returns (signing is only applicable to holders of 'iAM Smart' accounts with the digital signing function). They may also download the eTAX mobile application to handle their individual tax matters on their mobile devices. Taxpayers may visit the IRD's website for frequently asked questions and answers on how to complete tax returnsand guidance on electronic filing of employer's returns.

Employers may use the IR56 Forms Preparation Tool to prepare and submit all types of IR56 Forms (i.e. Forms IR56B/E/F/G/M) electronically when filing their employer's returns. This tool can be used online without installation. Employers can learn about the details of the tool on the IRD's website.

Profits tax payers are also encouraged to file tax returns electronically together with supporting documents (including financial statements and tax computations) in inline eXtensible Business Reporting Language (iXBRL) format. The IRD provides the IRD Taxonomy Package (the Taxonomy) and the IRD iXBRL Data Preparation Tools (the Tools) to help taxpayers prepare the required iXBRL data files. Taxpayers may visit the IRD's websitefor downloading the Taxonomy and the Tools. For enquiries on the iXBRL filing requirements and the use of the Tools, taxpayers may contact the IRD by email: ixbrl_reporting@ird.gov.hkor book a specific timeslot through the IRD's e-Appointment system for making enquiries on phone.

The first phase of mandatory electronic filing of profits tax returns also came into effect today (April 1). The relevant entities of in-scope multinational enterprise groups subject to the global minimum tax regime are required to file their profits tax returns electronically from the year of assessment 2025-26 onwards. Details are available on the IRD's website.

The IRD reminds taxpayers and employers to pay sufficient postage to ensure timely delivery if they submit their returns by mail. Underpaid mail items will not be accepted by the IRD. Postage rates are available on Hongkong Post's website.

Photo source: reference image

Incoming passenger convicted and jailed for possession of duty-not-paid cigarettes

An incoming passenger was sentenced to 29 days of imprisonment by the Fanling Magistrates' Courts today (May 23) for possessing duty-not-paid cigarettes and failing to declare them to Customs officers, in contravention of Dutiable Commodities Ordinance (DCO).

Customs officers intercepted the incoming 58-year-old male passenger at the Lok Ma Chau Spur Line Control Point yesterday (May 22) and seized 1 981 sticks of duty-not-paid cigarettes from him. The estimated market value of the seized cigarettes was about $8,100, and the duty potential was about $6,500. He was subsequently arrested.

Customs welcomes the sentence, noting that even a first-time offender may still be imprisoned. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offences. Members of the public should not defy the law.

Customs reminds members of the public that under the DCO, cigarettes are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.

Members of the public may report any suspected illicit cigarette activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Incoming passenger convicted and jailed for possession of duty-not-paid cigarettes Source: HKSAR Government Press Releases