Appendix to Tax Return - Individuals
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Section 2 Application for a Lump Sum Included under Part 4.1 of paper return BIR60 to be Related Back
Please refer to the
example in Part 4.1
of this Guide.
This amount should have been included in
Box 
and
and
should be stated in Box 
in Part 4.1 of BIR60.
in Part 4.1 of BIR60.
This amount should be stated in
Box 
in Part 4.1 of BIR60
in Part 4.1 of BIR60
Section 3 Relief claimed under Double Taxation Arrangement(s)
Tax credit relief is only applicable if you are a
person who is resident for tax purposes in Hong
Kong (Hong Kong resident person).
For the meaning of ‘resident for tax purposes’ in
relation to any double taxation arrangements,
please refer to the provisions of the arrangements
relating to the determination of resident status.
If you were a Hong Kong resident person during the
year and had to pay tax on any income derived from
a territory outside Hong Kong with which double
taxation arrangements have been made, you are
entitled to claim a relief under section 50 of the
Inland Revenue Ordinance by way of credit against
tax payable in respect of that income in Hong
Kong.
List of the countries / territories is available
at
www.ird.gov.hk/eng/tax/dta_inc.htm.
Section 4 Application for Full / Partial Exemption of Income Included under Part 4.1 of paper return BIR60
You may apply for full or partial exemption from
salaries tax in any of the following situations:
a.
If you hold a non-Hong Kong employment, you
will only be chargeable in respect of income
derived from services rendered in Hong Kong
per section 8(1A)(a).
b.
If you rendered all services outside Hong Kong
during the year, your income is excluded from
charge per section 8(1A)(b)(ii).
c.
If you have paid tax of substantially the same
nature as Hong Kong salaries tax to a
territory outside Hong Kong in respect of
income derived from services rendered in that
territory, the relevant income is excluded
from charge per section 8(1A)(c).
(For a year of assessment beginning on or after 1/4/2018, section 8(1A)(c) does not apply to income derived by a person from services rendered in a territory which has made a double taxation arrangement with Hong Kong. If you were a Hong Kong resident person during the year and derived income from services rendered in such a territory, you may claim relief by way of tax credit in Section 3.)
(For a year of assessment beginning on or after 1/4/2018, section 8(1A)(c) does not apply to income derived by a person from services rendered in a territory which has made a double taxation arrangement with Hong Kong. If you were a Hong Kong resident person during the year and derived income from services rendered in such a territory, you may claim relief by way of tax credit in Section 3.)
d.
If your income is derived from being a member
of the crew of a ship or an aircraft and your
presence in Hong Kong is not more than 60 days
in the year and 120 days in two consecutive
years, one of which being the current year,
your income will be exempted from tax per
section 8(2)(j).
e.
If you are a qualifying employee, and you have
provided investment management services for,
or on behalf of, a qualifying person for a
certified investment fund or a specified
entity, you can claim salaries tax concessions
for eligible carried interest.
f.
By provisions in the Inland Revenue Ordinance,
your income is specifically exempted, e.g.
those under section 8(2), section 8(2A) or
section 87, etc.
You are required to supply the following
information and documents:
a.
If full or partial exemption is claimed for
items (a) to (d), you must provide (i)
detailed computation of the exempted amount
and (ii) full itinerary of dates in Hong Kong
and outside Hong Kong. For section 8(1A)(c)
claim, you also have to submit copies of the
tax receipts and the relevant tax return in
support of tax paid outside Hong Kong.
b.
If salaries tax concessions are claimed for
eligible carried interest (item (e) above),
you should submit supplementary form SP4 which
can be downloaded from the Department’s
webpage (www.ird.gov.hk/soleprop_e). After completion, the supplementary form
SP4 must be printed out for signing and
submitted together with the tax return.
c.
For all claims, taxpayers will be required to
provide full facts in support.
Section 5 Place of Residence Provided
If a place of residence is provided to you by your
employer or its associated corporation, this part must
be completed. Refer to examples in
Part 4.2
of this Guide for details.
Section 6 Connected Entities of the Business that is Chargeable at Two-tiered Profits Tax Rates
If your business had connected entities for the
subject year, the two-tiered rates will only be
applicable to one of them. For
paper return, the entity which elects to be chargeable at
two-tiered rates is required to submit a complete list
showing the names and business registration numbers of
all the connected entities in supplementary form SP1
which can be downloaded from the Department’s webpage
(
www.ird.gov.hk/soleprop_e). After completion, the supplementary form SP1 must
be printed out for signing and submitted together with
the
paper return.
Section 7 Notification of Transactions for / with Non-resident Persons
Where you have, as agent, received on behalf of a
non-resident person any other trade or business
income arising in or derived from Hong Kong, you
will be asked to give further details of the
agency.
Where sums are paid or accrued to a non-resident
person in respect of professional services
rendered, wholly or partly, in Hong Kong, you must
state the name and address of each recipient,
together with the full amount and the nature of
the payment in a supporting schedule.
Section 8 Deduction Claims for Expenditure on Research and Development / Environmental Protection Facilities / Intellectual Properties
If deduction(s) is / are claimed for the following
expenditure(s), for
paper return, you are required to download the relevant
supplementary form from the Department’s webpage
(www.ird.gov.hk/soleprop_e) for completion:(a) expenditure on research and development (‘R&D’) under section 16B of the Inland Revenue Ordinance - supplementary form SP2;
(b) expenditure on energy efficient building installation under section 16I of the Inland Revenue Ordinance - supplementary form SP3.
After completion, the supplementary forms SP2 and / or SP3 must be printed out for signing and submitted together with the paper return.
If deduction(s) is / are claimed for capital
expenditure on intellectual properties under
sections 16E and / or 16EA of the Inland Revenue
Ordinance, you are required to state the amount
and the nature of intellectual property. For
specified capital expenditure on the purchase of
performer’s economic right, protected
layout-design (topography) right, protected plant
variety right, the deduction is applicable to the
year of assessment 2018/19 and subsequent years.
Section 10 Interest Payments Involving Re-mortgaged Loan
Refer to example under
Scenario 1
in Part 8.4 of this Guide, this part should be
completed as:
| (1) | Location of property | Pty A |
| (2) | Name of lending institution for the re-mortgaged loan | ABC Bank |
| (3) | Amount of the re-mortgaged loan | $2,500,000 |
| (4) | Interest paid for the re-mortgaged loan in the year | $112,500 |
| (5) | Period covered by the interest in item (4) above | 01/07/2025 to 31/03/2026 |
| (6) | Date of redemption of the previous mortgaged loan | 30/06/2025 |
| (7) | Balance of the previous mortgaged loan redeemed | $2,000,000 |
| (8) | Interest paid for the previous mortgaged loan in the year | $30,000 |
| (9) | Period covered by the interest in item (8) above | 01/04/2025 to 30/06/2025 |
(May 2026)