One in three Hong Kongers have no tax payment plans: survey

The clock is ticking for them.

As tax season approaches, Hongkongers are exploring various payment options to settle their taxes. However, it seems that time is running short for over one-third of people in the city, who said they have not planned ahead for their tax payments.

According to a release from TransUnion, this was based on a survey it conducted.

An online survey of 500 adults conducted by Zogby Analytics and commissioned by TransUnion revealed that only half (54%) of respondents saved up in advance in anticipation of the upcoming tax season.

Meanwhile, 36% said they have no plans at all or are unsure about how they will fund their tax payment. The remaining 10% said they intend to borrow.

Here's more from TransUnion:

Among those surveyed who plan to borrow for their tax payments, half of them said they will take a tax loan from banks or finance companies, 30% plan to use credit, while 20% will ask their family and friends to lend a hand.

Not all Hongkongers who will take a tax loan will use it solely to settle their taxes. Some respondents (2%) indicated that they will use part of it to fund their holiday spending as the year ends.

Commenting on the results of the survey, Angus Choi, Managing Director of TransUnion Hong Kong, said, “The survey shows that many Hongkongers are not sufficiently ready to settle their taxes.

It is important for consumers to have a financial plan in place for their taxes to minimize stress.

For those applying for tax loans, consumers need to remember to re-pay on time, which will reduce interest payment. Effective debt management will help consumers build a solid credit history in the long run, which will increase their chances of securing lower-interest credit.”