Pursuant to section 71 of the Inland Revenue Ordinance (Cap.112), the Commissioner of Inland Revenue may in his discretion order a surcharge of not exceeding 5% on the amount of tax outstanding after the due date and a further surcharge of not exceeding 10% on the amount remaining unpaid after 6 months from the due date.

On 18 June 2021, the Inland Revenue Department (IRD) announced a relief measure on tax payment.  For taxpayers who have obtained the IRD’s approval for instalment settlement of the demand notes for Salaries Tax, Profits Tax and Personal Assessment for the year of assessment 2020/21 issued between May 2021 and May 2022, no surcharge will be imposed for a maximum period of one year counted from the respective due dates of the demand notes, provided that the instalment plans are duly adhered to.

If the tax demand under the first instalment of the demand note has been settled on or before the due date and instalment plan is only granted for settlement of the tax demanded under the second instalment, the one-year period will count from the due date for the second instalment.

For more information, please refer to the Inland Revenue Department’s website.