IR6167 Form: Notification of Salaries Tax
The Hong Kong tax system operates on a territorial source principle, applying to individuals who earn employment income/director’s fees (Salaries Tax), rental income (Property Tax), or business profits (Profits Tax) from within its jurisdiction. This taxation applies irrespective of whether one is a tax resident of Hong Kong.
Salaries Tax Liability
If you are an individual whose taxable employment income/director’s fees exceeds allowances and deductions, you potentially become liable for Salaries Tax. To facilitate this, the Inland Revenue Department (IRD) sends out the BIR60 form, also known as the Individual Tax form, every May.
This form is your primary tool for declaring income and ensuring compliance with local tax laws.
The Importance of Self-Notification to the IRD
For first-time taxpayers or those who were not previously taxed, the IRD might not automatically send a tax return.
In such situations, it becomes your responsibility to voluntarily notify the IRD and request for issuance of the BIR60 from for completion if you find yourself liable for Salaries Tax and haven’t received a tax return by 31 July – four months after the end of the basis period (1 April to 31 March of the following year).
This requirement stems from Section 51(2) of the Inland Revenue Ordinance, which mandates individuals chargeable to tax to inform the Commissioner in writing within four months after the end of the basis period for that year of assessment.
The IRD is empowered to take penal/prosecution actions against taxpayers for failure to comply with this obligation.
Notification is crucial unless the IRD has already issued a Tax Return.
The basis period for Salaries Tax is from 1 April to 31 March of the following year. Therefore, if you are liable and have not received a tax return, you must approach the IRD for a tax return by 31 July.
Utilising the IR6167 Form for Notification of Chargeability
To notify the IRD, you can use the IR6167 form, titled “Notification of Chargeability to Salaries Tax”.
This simple one-page form requires your personal and contact details, along with your estimated annual income and current employer information.
Similar forms, such as the IR6168 for Profits Tax and the IR6129 for Property Tax, are used for notifying chargeability in these respective areas.
HKWJ Tax Law Can Help
Understanding and navigating the complexities of Hong Kong’s tax system can be overwhelming, especially for those unfamiliar with forms like the IR6167.
At HKWJ Tax Law, we are dedicated to providing professional, clear, and approachable guidance in tax law matters.
We offer expertise in assessing tax liability in Hong Kong, assisting with tax form completion, and navigating the intricacies of local tax laws.
Our goal is to ensure that you remain compliant while optimising your tax position.
Contact us for tailored tax solutions and support via the form below or email [email protected].
