Best Tax Loans Rates in Hong Kong 2019

Thinking about getting a Tax Loans in Hong Kong? MoneySmart.hk lets you compare and choose the best personal loan in Hong Kong with confidence.

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Compare Tax Loans 2019

BankTax loan plansLowest APR / Repayment period (months)
Dah SingTax Loan1.38% / 12
HSBCPersonal Tax Loan1.62% / 6 to 24
CitibankTax Season Loan2.01% / 6 to 60
BEATax Season Loan2.23% / 12 to 24
BOC"iSmart" Tax Loan1.78% / 6 to 18
DBSTax Season Loan2.53% / 12 to 24

How to pick the best tax loan?

Interest rate is not the ONLY factor for comparing tax loans

Comparing loan plans are not only about interest rates but the total costs of your loan, such as the total amount, repayment period, and handling fee. So, Annual Percentage Rate (APR) expressed as a percentage of the actual yearly cost of a loan over the term. It is the best indicator when doing the comparison of different loan plans.

Why do we need tax loans?

Paying tax

During the tax season, Hong Kong banks and private financial lenders provide tax loans in a lower interest rate with longer repayment, some of them even extend to 48 months. So that you are able to manage cash flow with higher flexibility.

Simpler and more flexible loan application

Lower interest rates, simpler application and fewer limitations are highlights. As long as you’re age 18+ and earning HK$60,000+/year or HK$5,000+/month, you’re welcomed to apply for tax loans. Bring a copy of your latest tax slip and you’re good to go!

Tips for Getting Tax Loans

Tip #1

Annual Percentage Rate (APR) is the key to compare loans

The calculation of APR includes all the interests, admin fees and handling fees of a tax loan. That’s why APR is the best way to compare the actual expenses of tax loans.

Tip #2

Different loan promotions launch in tax seasons

Banks and private lenders usually launch tax loan offers from October to April of the next year. Out of all loan promotions, cash rebate is the most common one – the more you borrow, the more rebates you can get.

Tip #3

Be aware of the terms and conditions in loans

Some tax loans may look attractive with an extremely low interest rate. But everything come at a price — the banks will ask you to set up an account and make a huge deposit first; or they’ll set a bottom limit to your borrowing amount, then you’ll have to borrow a loan of $1,000,000+ to get the lowest interest rate.

Frequently Asked Questions

Am I qualified for tax loan applications?

If you’re 18+ and earning HK$60,000+/year or HK$5,000+/month, simply bring a copy of your latest tax slip, you’re qualified.

Where can I get a tax loan?

Banks and financial lenders usually launch tax loan offers from October to April of the next year.

How much can I borrow from a tax loan?

It depends on your salary. Banks and financial lenders can borrow you a tax loan at maximum 8x to 12x of your monthly salary.

How long can my tax loan repayment period be?

Normally it’s 6 to 24 months for tax loans. Banks and financial lenders will set you a fixed repayment amount. The longer the repayment period, the lower the monthly repayment amount, and the higher the interest rate.

Do tax loans have any extra handling fee?

Some banks not only calculate interest with monthly flat rate, but they also charge you a handling fee, which is usually 1% of your loan amount.

What are the interest rates of tax loans?

The annualised percentage rate of tax loans is between 2% to 11%, depending on your loan amount and repayment period.

What do I need to prepare for my tax loan application?

You’ll need these are the documents for your tax loan:

  • Photocopy of your HKID card (both sides);
  • If you’re an employee, you’ll need your salary proof or your bank statement for the last 3 months and the latest tax slip.
  • If you’re self-employed, you’ll need your full set of latest Profits Tax Demand Note for the last 2 years and your bank statement for the last 6 months.