7. Can I apply for paying less tax, or for the holding over (deferring payment) of Provisional Profits Tax?

7. 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, including:

• Your assessable profits are, or are likely to be, less than 90% of the assessable profits for the year before the year of assessment. 
• The amount of any loss brought forward for set off to that year of assessment has been omitted or is incorrect.
• You have ceased, or will cease, to carry on your trade, profession or business and assessable profits are, or are likely to be, less than the assessable profits for the year preceding the year of assessment.
• You have elected for Personal Assessment for which Provisional Tax was charged, and the election is likely to reduce your liability to tax.
• You have objected to your assessment for Profits Tax for the year preceding the year of assessment for which Provisional Tax was charged.

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. Supporting documents may be required depending on the grounds relied on.