Holding Over of Provisional Tax

You may apply in writing for holding over of the whole or part of the provisional 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.

Time Limit for Application

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.  Details about the time limit for applying for holdover of provisional tax can be found in the following link.

How to Lodge an Application

Your application for holding over of provisional tax must be made in writing. You may download and complete the relevant parts of the Form IR1121, sign it and return it to the Inland Revenue Department.

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)

Download Form for holdover of provisional tax:
Form IR1121

If you are an eTAX account holder, you may submit your application through electronic processing of holdover applications under eTAX with income from employment, sole owned properties and sole proprietorship businesses and will be provided with instant acknowledgement of the application.

Grounds for Application

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.

Provisional Salaries Tax

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

• You have become entitled to an allowance, which was not given in the notice for payment of provisional tax, for example, child allowance for your newborn baby, or dependent parent allowance for your parent who has attained the qualifying age in the year of assessment for which provisional tax was charged.
  
  Full particulars relating to the allowance claimed should be provided in your application, such as name and date of birth of the newborn child, or name, date of birth and Hong Kong Identity Card number of the dependent parent or grandparent together with a confirmation whether he/she was ordinarily resident in Hong Kong during the relevant year.
  
  More information on basic and other allowances

• Your net chargeable income for the year of assessment for which provisional tax was charged is, or is likely to be, less than 90% of the net chargeable income for the preceding year or of the estimated sum in respect of which you are liable to pay provisional tax.
• You have assessed to provisional salary tax and have paid or are likely to pay self-education expenses, contributions to a recognized retirement scheme, residential care expenses, home loan interest, qualifying premiums under the Voluntary Health Insurance Scheme Policy, qualifying annuity premiums, tax deductible MPF voluntary contributions or domestic rents during the year of assessment; and the amounts exceed or are likely to exceed the specified amount for the year preceding the year of assessment for which provisional tax was charged.
  
  More information on deductions
• You have ceased, or will before the end of the year of assessment for which provisional tax was charged cease, to derive income chargeable to salaries tax.
   
  You should state the estimated amount of income for the whole year of assessment in your application. For example, if you wish to apply for holdover of the provisional tax for 2023/24, you should state your estimated income for the period from 1 April 2023 to 31 March 2024, and give reason for the reduction of income such as unemployment, retirement and salary reduction.
• You have objected to your salaries tax assessment for the year preceding the year of assessment for which provisional tax was charged.
  
  Frequently asked questions about application for holdover of provisional salaries tax

Provisional Property Tax

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

• The assessable value for the year of assessment for which provisional tax was charged is, or is likely to be, less than 90% of the assessable value for the preceding year or of the estimated assessable value in respect of which you are liable to pay provisional tax.
  
  For example, if you are assessed to provisional property tax based on an assessable value of $300,000, you may apply for holding over of payment of provisional tax if the assessable value for the relevant year is, or is likely to be, less than $270,000.
  
  Full particulars of the rental received and receivable should be furnished in support of your application.
• You have ceased, or will before the end of the year of assessment for which provisional tax was charged cease, to be an owner of property, and the cessation of ownership will result in a reduction of the assessable value on which provisional tax was charged.
  
  Full particulars of the cessation of ownership and the rental received and receivable should be furnished in support of the application.
• 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 property tax assessment for the year preceding the year of assessment for which provisional tax was charged.