6. Can I apply for paying less tax, or for the holding over (deferring payment) of Provisional Profits Tax?
There are some grounds for the holdover of Provisional Profits Tax as stipulated in section 63J of the Inland Revenue Ordinance. To highlight a few, they include:
- Your assessable profits for the year of assessment are, or are likely to be, less than 90 per cent of the assessable profits for the preceding year; or
- You have ceased, or will before the end of the year of assessment cease, to carry on your trade, profession or business.
Your application must be made in writing and received by the Inland Revenue Department not later than 28 days before the due date for payment of the provisional tax, or 14 days after the issue of the demand note concerned, whichever is the later.