Holding Over of Provisional Profits Tax

You may apply in writing for holding over of the whole or part of the provisional profits tax on the grounds as specified in the Inland Revenue Ordinance. Here you can learn more about the time limit, methods and grounds for application for holding over of provisional tax.

Grounds for Holding Over of Provisional Profits Tax

An application for holding over of provisional profits tax may be made on one of the following grounds:

• Your assessable profits for the year of assessment are, or are likely to be, less than 90% of the assessable profits for the year preceding the year of assessment or of the estimated sum in respect of which you are liable to pay provisional profits tax.
  Supporting documents including properly signed draft accounts covering a period of not less than 8 months should be submitted together with the application.
• The amount of any loss brought forward for set off to that year of assessment has been omitted or is incorrect.
• You have ceased, or will before the end of the year of assessment cease, to carry on your trade, profession or business and that the assessable profits for that year of assessment are, or are likely to be, less than the assessable profits for the year preceding the year of assessment or of the estimated sum in respect of which you are liable to pay provisional profits tax.
• You have elected to be personally assessed for the year of assessment for which provisional tax was charged, and the election is likely to reduce your liability to tax.
• You have objected to your assessment for profits tax for the year preceding the year of assessment for which provisional tax was charged.

Time Limit

Your application for holding over of provisional tax should be lodged not later than:

• 28 days before the due date for payment of the provisional tax, or
• 14 days after the date of issue of the notice for payment of the provisional tax,

whichever is later.

If the provisional tax is payable by two instalments and the first instalment has been settled by the due date, an application for holding over of the whole or part of the second instalment may be made subject to the prescribed time limit and grounds for application.  

How to Lodge an Application

An application for holdover of provisional profits tax can be submitted electronically through Business Tax Portal or Tax Representative Portal subject to the role of the applicant.

Alternatively, you may download and complete the relevant parts of the Form IR1121, sign it and return it to the Inland Revenue Department.

Form IR1121

Postal address:

Commissioner of Inland Revenue
P.O. Box 28487,
Concorde Road Post Office,
Kowloon,
Hong Kong

Fax Number: 2519 6896

The Department will not accept underpaid mail items. Please pay sufficient postage to ensure your mail items can duly reach us. (Details)