【First-time Tax Filing Guide】How to fill out the tax return form? See step-by-step instructions and a handy quick guide

Many new employees don’t know where to begin when faced with a tax return. How exactly should individuals fill out their tax return? This time 10Life has put together a beginner’s guide for first-time filers, covering tips for completing the tax form, methods for claiming deductions, and common questions, so everyone can file their taxes with ease.

Generally, the Inland Revenue Department begins sending individual tax returns to taxpayers across Hong Kong in early May each year. Taxpayers are required to complete and submit them within one month. However, for employees filing tax for the first time, because the Inland Revenue Department needs to create a tax file for them first, the mailing of the tax return may be slightly delayed. It is usually sent within five months after receipt of the following documents:

• IR56E form completed by the employer
• or a notification submitted to the Commissioner of Inland Revenue that salaries tax is payable

If you fail to submit the tax return on time, you may face a fine and even prosecution. Therefore, if you have not received the tax return within one month, you should proactively contact the Inland Revenue Department to request it and ensure you submit it on time.

After receiving the tax return, taxpayers need to submit it within the deadline. There are two main ways to file: filling out a paper tax return and filing online.

Filling out a paper tax return

After receiving the "green envelope," taxpayers should complete it according to the tax return instructions and mail it back to the Inland Revenue Department. Be mindful of postage time to avoid delays. The submission deadline for paper tax returns is within one month after the tax return is issued; the deadline is usually in June.

Online filing

To file online you must first apply for an "eTax" account, and you can enjoy a one-month extension of the submission deadline; the deadline is usually extended to July. If you want to know how to open an "eTax" account and how to file online, you can read [Tax Filing 2024] How to apply for online filing? 4 steps to open an "eTax" account and online filing tutorial.

Key tax payment dates

Employees filing taxes for the first time need to pay special attention to the timing of tax payments; remember to note the following key dates:

How to Pay Taxes

The Hong Kong Inland Revenue Department offers a variety of payment methods, including online payment, bank ATMs, and mailed cheques, making it convenient for taxpayers to pay their taxes easily. Want to know how to complete tax payment procedures quickly and accurately? Read [Tax Payment Methods 2024] A Complete Guide to 10 Ways to Pay Taxes now, and never worry about missing or delaying payments again!

The Individual Tax Return (BIR60) consists of 12 parts. Although it may seem complicated, you only need to focus on completing the parts that apply to you.

Part 1: Personal particulars: fill in your name, identity card number, address and spouse details (if applicable)
Part 2: Notices: notify the Inland Revenue Department of any special circumstances here, for example authorising someone to complete the return on your behalf; otherwise this can generally be skipped
Part 3: Property tax: if you have rental income from property, declare it in this section
Part 4: Salaries tax: declare income for the year of assessment (employees should pay special attention to this section)
Part 5: Profits tax: sole proprietors must complete this section; partnerships do not need to declare here
Part 6: Estimated assessable profits under the Inland Revenue Ordinance: declare business profits arising in or derived from Hong Kong during the basis period
Part 7: Personal assessment: if you are not a business partner or a rental property owner, you can simply answer “No” for this section
Part 8: Interest deductions / Home loan interest deductions: if you have loan payments for an owner-occupied or rented property, the related interest can be claimed here
Part 9: Voluntary Health Insurance deductions: if you purchase a qualifying Voluntary Health Insurance Scheme plan for yourself or family members, you can claim the premium deduction here
Part 10: Qualifying annuity premiums and tax-deductible MPF voluntary contributions: declare voluntary MPF contributions and qualifying annuity premiums for yourself or your spouse here for tax relief
Part 11: Allowances and elderly residential care expenses: married persons, eligible disabled persons, or taxpayers supporting parents/children can claim deductions in this section
Part 12: Declaration: sign and date to confirm the information is true
 

For first-time taxpayers, the part that requires the most attention is Section 4.1, which covers all income for the tax assessment year.

Prepare relevant documents:

Before filling it out, you can prepare the following information to make the process smoother:

• Full-year payslips or income records
• Mandatory Provident Fund (MPF) contribution records (income before deducting contributions should be reported)
• Documents related to bonuses or other additional income

It is worth mentioning that all income must be declared before MPF contributions are deducted.

Once the relevant documents are ready, you can start filling in the individual tax return. You can refer to the following guide:

Step 2: Organize income information

First-time filers should first review their salary records and declare all remuneration before deducting mandatory contributions to the MPF or recognized occupational retirement schemes, including the following items:

• Basic salary
• Bonuses
• Allowances (e.g., transport allowance, meal allowance, etc.)
• Commissions
• Gains from shares (e.g., gains from employer-provided share options)

Step 3: Complete the corresponding fields

Enter the amounts into the correct boxes on the tax return according to the type of income:

• Total emoluments and cumulative total emoluments (Box 29): includes all salaries, bonuses and allowances
• Gains from share options (Box 30): if there are gains from share options, declare them here
• Lump sum payments (Box 31): e.g., compensation received on retirement or termination of employment
• Commission income (Box 32): enter the relevant commission income

Step 4: Fill in deductions:

Part 4.3 of Section 4 of the tax return is specifically for entering deduction items. The following are common deductible items:

You only need to fill in the corresponding deduction amounts for each item, but remember to confirm the deduction limits first. A quick reminder: although you do not need to proactively submit supporting documents when filing, it is best to keep all receipts and related records in case they are needed for verification later.

"Three tax-deduction items" — where to enter the deductions?

"Three tax-deduction items" refers to Voluntary Health Insurance, qualifying annuity premiums, and tax-deductible MPF voluntary contributions, which need to be entered separately. Below we will explain further.

Voluntary Health Insurance premiums:

If you purchased a qualifying Voluntary Health Insurance plan for yourself or your family, you can claim the premium deduction in Part 9 of the tax return. The deduction limit is HK$8,000 per insured person, and there is no limit on the number of insured persons.

Qualifying annuity and/or tax-deductible MPF voluntary contributions:

You can declare qualifying annuity premiums and MPF voluntary contributions in Part 10 of the tax return; the combined maximum deduction for the two is HK$60,000.
 

Do I need to attach supporting documents (such as payslips) when submitting the tax return?

Generally, you do not need to attach supporting documents when submitting the tax return, unless the taxpayer wishes to claim full or partial exemption on income. For example, if you worked outside Hong Kong for the entire tax year, you can submit the relevant documents to apply for exemption.

How long should supporting documents or records for salaries and deductible expenses be retained?

Because the Inland Revenue Department may carry out audits later, all relevant receipts and records should be kept for 6 years, counted from the end of that tax year.

What should I do if I omitted exemptions or deduction information when filing my tax return?

If you discover omissions or errors in your tax return after receiving the tax assessment, you can apply to the Inland Revenue Department for correction. The deadline for applying to amend an assessment is within 6 years after the end of the relevant tax year, or within 6 months after the issue of the assessment notice, whichever is later.
 

“Tax-saving Trio” can save tax while providing protection. The three combined can bring taxpayers up to HK$68,000 or more in annual tax deductions. Among them, the Qualifying Deferred Annuity Policy (QDAP) can provide up to HK$60,000 in tax deductions, while accumulating wealth and preparing for retirement. When choosing a tax-deductible annuity, first understand the purpose of the policy—whether it is for savings, retirement planning, or hedging longevity risk—and, according to your lifestyle and financial situation, select an appropriate contribution amount, income period, and annuity payout. If you want to know more about tips for choosing a tax-deductible annuity and important points, feel free to call or WhatsApp 37051599 to consult a 10Life insurance adviser.

Further reading：
【2025 Tax-deductible Annuity Complete Guide】Analysis of annuity tax-deduction products (10-year annuity term) — See how annuities save tax and which offer higher returns!
【Tax-saving Miracle】How soon can a tax-deductible annuity break even? How can you maximize tax deductions?
【Tax Guide】How much annual salary do you need to start paying tax? See Hong Kong salaries tax calculation tutorial
【Tax Filing 2025】How to apply for online tax filing? See the 4 steps to open an “eTax” account and the tax filing guide
【Tax Bill】When is it usually received? What to do if you never receive it? Can you request a reissue if the tax bill is lost? 

Last updated: 19 December 2024

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.