You can calculate your tax liability under salaries tax or personal assessment by using a simple tax computation program developed by the Inland Revenue Department (IRD).
How Salaries Tax is computed
Salaries Tax is chargeable on the smaller of your net chargeable income at progressive rates and your net income at standard rate for each year of assessment.
Net Chargeable Income = Total Income - Deductions - Allowances
Net Income = Total Income - Deductions
A year of assessment runs from 1 April to 31 March of the following year.
Provisional Salaries Tax for a year is usually based on the income less the allowances of the preceding year.
- More on progressive rate http://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm#pr
- More on standard rate http://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm#sr
Points to Note When Using Tax Computation Program
The tax payable figure produced by the program is for your information only. Its correctness always depends on whether you have entered the correct income figure, deductions, your marital status and the number of your dependants. IRD accepts no liability whatsoever for any loss or damage which may be incurred by its use.
Points to Note When Using Tax Computation Program
Salaries Tax
The program can indicate whether it is to your advantage to elect joint assessment if the income and deductions of you and your spouse (where applicable) are inputted in the input page.
Personal Assessment
If you and/or your spouse had income chargeable to property tax and/or profits tax, the program can indicate whether it is to your advantage to elect for personal assessment. Please input the total income and deductions of you and your spouse (where applicable) in the input page.
Filing under eTAX
The Internet Filing function can also compute your tax liability if you are filing a current year return. From May 2009 onwards, immediately before your submission or after you have lodged your tax return electronically, the system will estimate your salaries tax payable automatically according to the information supplied in your tax return and show you the amount of salaries tax payable under each instalment after deducting the provisional tax charged for the year.
- More on features of the Internet Filing function http://www.gov.hk/en/residents/taxes/etax/services/filing_of_tax_return_bir60.htm
Tax Computation
To calculate the tax payable under salaries tax or personal assessment, please select the link for the relevant year of assessment. Select your marital status and input the total income and other information on the input page. Then press the ‘Compute’ button at the bottom. Another page will appear and show you your estimated tax liability.
Calculating Your Tax under Salaries Tax
- 2010/11 http://www.ird.gov.hk/eng/ese/st_comp_2010_11/stcfrm.htm
- 2009/10 http://www.ird.gov.hk/eng/ese/st_comp_2009_10/stcfrm.htm
- 2008/09 http://www.ird.gov.hk/eng/ese/st_comp_2008_09_budget_proposal/stcfrm.htm
- 2007/08 http://www.ird.gov.hk/eng/ese/st_comp_2007_08_budget/stcfrm.htm
- 2006/07 http://www.ird.gov.hk/eng/ese/st_comp_2006_07/stcfrm.htm
- 2005/06 http://www.ird.gov.hk/eng/ese/st_comp_2005_06/stcfrm.htm
- 2004/05 http://www.ird.gov.hk/eng/ese/st_comp_2004_05/stcfrm.htm
Calculating Your Tax under Personal Assessment
- 2010/11 http://www.ird.gov.hk/eng/ese/pa_comp_2010_11/pacfrm.htm
- 2009/10 http://www.ird.gov.hk/eng/ese/pa_comp_2009_10/pacfrm.htm
- 2008/09 http://www.ird.gov.hk/eng/ese/pa_comp_2008_09_budget_proposal/pacfrm.htm
- 2007/08 http://www.ird.gov.hk/eng/ese/pa_comp_2007_08_budget/pacfrm.htm
- 2006/07 http://www.ird.gov.hk/eng/ese/pa_comp_2006_07/pacfrm.htm
- 2005/06 http://www.ird.gov.hk/eng/ese/pa_comp_2005_06/pacfrm.htm
- 2004/05 http://www.ird.gov.hk/eng/ese/pa_comp_2004_05/pacfrm.htm
Last review date: June 2010
