The bulk issue of the 2025/26 Individual Tax Returns took place on 4 May 2026. Individuals should be aware of their filing obligations and take steps to prepare early to ensure timely and accurate submission now that returns are issued.

Under Hong Kong’s salaries tax regime, individuals are required to report their income and file Individual Tax Returns once issued by the Inland Revenue Department (IRD). This includes individuals who derive:

• Employment income
• Rental income
• Sole proprietorship business income

Filing obligations arise regardless of whether any tax is ultimately payable. Individuals are responsible for ensuring that the information reported in their tax returns is complete and accurate, and for retaining sufficient records to support the amounts reported.

Filing deadlines depend on whether an individual is represented by a tax representative and whether the case involves sole proprietorship business income.

Based on the IRD’s announced timetable:

• For represented cases not involving sole proprietorship business accounts, a block extension for submission of Individual Tax Returns will be granted to 4 July 2026
• For cases involving sole proprietorship business accounts (irrespective of accounting date), the extended filing deadline will be 5 October 2026

For unrepresented cases, Individual Tax Returns are generally required to be filed within one month from the date of issue.

An automatic one-month extension is generally available for taxpayers who file their returns electronically.

Individuals should confirm early whether they are filing on a represented or unrepresented basis to ensure the correct deadline is observed.

Individual tax filings may involve additional complexity where taxpayers have:

• Employment income with cross-border or multi-jurisdictional elements
• Bonuses, commissions, equity-based compensation, or termination payments
• Rental income from Hong Kong property
• Sole proprietorship or other business income
• Changes in employment, role, or residency status during the year
• Claims for deductions or personal allowances

Changes in personal or employment circumstances may affect both reporting obligations and tax exposure.

Preparing early allows taxpayers to:

• Identify potential reporting issues or changes in tax position
• Gather and verify income details and supporting documentation in advance
• Reduce the risk of late filing, errors, or follow-up enquiries from the IRD

Early review is particularly important where business income or overseas elements are involved.

Failure to file an Individual Tax Return on time, or the submission of incorrect or incomplete information, may result in penalties of up to HK$10,000, plus up to three times the amount of tax undercharged.

Maintaining proper records and ensuring accurate reporting remain key to managing individual tax compliance risk.

Individual tax compliance may involve complexities beyond routine return filing, particularly where business income, cross-border employment arrangements, or variable compensation structures are involved.

Our tax team supports companies in managing their employees’ Hong Kong tax obligations, helping to ensure filings are accurate, timely, and well-supported. For further guidance on managing employee tax filing requirements, please reach out to our team.