BIR60 Tax Return Guide: How to Complete Each Section

At a glance

Form layout, deduction caps and allowances follow the IRD’s latest published figures for the relevant year of assessment; this article uses 2025/26 figures.

What is the BIR60, and who receives one?

The BIR60 is the individual tax return — a different form from the profits tax return a company files. If you have employment income, rental income from a property you own solely, or a sole proprietorship business, the IRD sends you a BIR60: one form covers all three types of income, along with deductions, allowances and the personal assessment election.

Two things worth noting. Not receiving a return does not mean you have nothing to file — anyone with chargeable income has a duty to notify the IRD proactively. And if this is your first return, start with filing your first tax return. How the tax itself is calculated — progressive versus standard rate, when it falls due — is a separate topic; this article is about how to fill in the form.

One practical tip: the form is revised from time to time and item numbers move around, so remember what goes in each part rather than the numbering. The BIR60 broadly runs: personal particulars → property rental income → employment income → sole proprietorship profits → personal assessment election → deductions → allowances.

Employment income: everything counts, not just base salary

The basic principle here is that everything counts: base salary, commissions, bonuses, double pay and cash allowances (housing allowance, travel allowance and the rest) are all chargeable income. Your employer filed its remuneration return (IR56B) for you back in April and you should hold a copy — report from it, but check it too, because the responsibility for a complete return sits with you. If you changed jobs during the year, report every job: old and new employers each file their own IR56B, and your return has to match the two combined.

Employer-provided housing is the item most people get wrong: you do not report the rent the employer paid, but a “rental value” — generally 10% of your income (after deductible outgoings) for a residential flat, lower for hotel or hostel accommodation (8% or 4%). If you contributed rent yourself, that part reduces the figure. The calculation can go several ways; it is worth having a professional check which works out best.

Deductions: the three most used, each with a cap

• Mandatory MPF contributions — capped at HK$18,000. Only mandatory contributions count: voluntary ones are not deductible (except tax-deductible voluntary contributions, TVC, which share a separate HK$60,000 cap with qualifying annuity premiums).
• Approved charitable donations — must be to an approved charity, with receipts, and at least HK$100 in aggregate for the year; capped at 35% of assessable income.
• VHIS premiums — capped at HK$8,000 per insured person per year, with no limit on the number of insured persons: qualifying policies for yourself and specified relatives (parents and children, for example) can all be claimed.

Home loan interest and domestic rent deductions also exist, each with its own duration and cap rules — check the IRD’s latest published figures.

Allowances: the money is automatic, the details are not

The basic allowance of HK$132,000 is granted automatically — no claim needed. Everything else requires complete dependant details on the form:

A parent who lived with you throughout the year earns an additional allowance of the same amount (doubling it), and dependent parent allowances rise from the 2026/27 year of assessment. When completing the form: have each dependant’s ID number and date of birth ready, and remember that only one child may claim any given parent — siblings need to settle this beforehand.

Personal assessment: ticking the box cannot hurt

If you have a rental property (and want to deduct mortgage interest) or business losses, electing personal assessment usually helps; for pure employees it makes no difference. Not sure? Tick it anyway — if the election works against you, the IRD automatically assesses you the more favourable way.

Married couples also have the joint assessment election: where one spouse earns less than their own allowance, assessing jointly usually saves tax. Both elections are a single tick-box — and a missed tick is one of the commonest ways people overpay.

The most common errors

1. Omitting bonuses and allowances — if the employer’s IR56B shows them and your BIR60 does not, the IRD’s matching will produce an enquiry letter.
2. Over-claiming MPF — contributions above HK$18,000 are still capped at HK$18,000; do not slip voluntary contributions in.
3. Incomplete or duplicated dependent parent claims — a missing ID number, or two siblings claiming the same parent, slows the assessment and can trigger a review.
4. Forgetting joint assessment or personal assessment — especially for couples with one lower earner, a missed tick is voluntary overpayment.

What happens after you file?

Most people receive the notice of assessment (the tax bill) from the third quarter onwards, showing the tax due and the payment dates — normally two instalments, in January and April of the following year, with provisional tax added to the first bill. If you disagree with the assessment, you must object in writing within 1 month of its issue date (form IR831 serves); after that, only a reasonable excuse gets a late objection accepted.

One more point: filing late, or not at all, exposes you to penalties — and the IRD can raise an estimated assessment without your figures, which tends to err on the high side. Objecting to that is another round of work, so filing on time is always the least effort.

Paying yourself from your own company? Same form

Many owners assume that salary paid from their own company somehow bypasses the BIR60 — the opposite is true. The salary you pay yourself is your employment income and goes on the BIR60 like anyone else’s. The company, meanwhile, has its own employer reporting duties: filing the BIR56A and an IR56B for every employee (including you) each April, plus compliant MPF arrangements. Above all, the two sides must match — if the company reports HK$500,000 and you report HK$400,000, the IRD will quickly ask why.

How we can help

AIcountant provides one-stop support for Hong Kong SME owners — company profits tax filing, employer’s returns (BIR56A/IR56B), accounts and audit arrangements, and the owner’s own salary and personal filing, all handled as one picture. Received a return and not sure where to start? Talk to us.

This article is general information and does not constitute tax advice. Form structure, deduction caps and allowances are governed by the Inland Revenue Ordinance and the IRD’s latest published guidance for the relevant year of assessment.