When is my profits tax return due in Hong Kong

When Is My Profits Tax Return Due

A profits tax return is due one month from the date the Inland Revenue Department issues it. The IRD issues Form BIR51 for corporations or Form BIR52 for unincorporated businesses, together with the relevant supplementary forms, to each taxpayer on a cycle based on the taxpayer's accounting date and the year of assessment. The due date stated on the return is one calendar month after its date of issue.

Profits Tax Return Due Date Hong Kong

The IRD issues returns in batches, so the actual due date depends on when your return is issued. The department issues the bulk of profits tax returns between April and August each year, covering the preceding year of assessment. A company with a 31 December accounting reference date will receive its return at a different point in the cycle than a company with a 31 March year end. The due date therefore varies. The return itself carries the specific filing date. Work to that date, not a general calendar deadline.

Form BIR51 Deadline

Form BIR51 is the profits tax return for corporations. Its deadline is one month from the date of issue. Miss that deadline without an extension and the IRD may issue a late filing penalty or raise an estimated assessment under section 60 of the Inland Revenue Ordinance. An estimated assessment can be challenged only by filing a valid return and a notice of objection within the applicable time limits. Late filing also disrupts provisional tax collection, as an assessment cannot be adjusted until the return is processed.

Inland Revenue Block Extension

The one-month deadline is strict unless the company has appointed a tax representative - a practising certified public accountant or a licensed corporate service provider - registered with the IRD's Tax Representative Portal. Where a tax representative is in place, the IRD publishes a block extension letter each year. This scheme allows the representative to file returns for a group of clients by a later date, which varies according to the client's accounting date. For a company with a 31 December accounting date, the block extension date is mid-November of the following year. For a company with a 31 March accounting date, the block extension date is mid-February of the following year. The IRD publishes the current extension letter on its website, and the tax representative must apply the date stated there.

The block extension covers the filing of the completed return, including the audited financial statements and the tax computation. It does not remove the obligation to pay provisional tax on time or to submit any supplementary forms the return requires.

Tax Return Filing Date Hong Kong

A company without a tax representative must file by the one-month deadline on the return. A company with a tax representative should confirm the block extension date with its representative, not the date on the form. The IRD will treat a return received by the block extension date as filed on time even if it arrives after the one-month date, provided the tax representative holds a valid registration and the company falls within the class covered by the extension letter.

A company that receives a return but does not expect to have assessable profits for the year must still file the return by the applicable deadline, declaring the company's position. Failure to file a nil return is treated the same as failure to file any other return.

Late Filing Penalty and Estimated Assessment

If the return is not filed by the due date - whether the one-month deadline or the block extension date - the IRD may impose a late filing penalty. The penalty for a first late filing is a fixed amount set out in the Inland Revenue Ordinance. Repeat late filings attract higher penalties and may lead to prosecution. The department may also raise an estimated assessment based on the information it holds, which is higher than the actual profits because the IRD applies a conservative view. The company then bears the burden of filing a return and objecting to the assessment to have it reduced, a process that can take months.

What to Do Next

Check the date of issue printed on the Form BIR51 or Form BIR52 you received. If you hold a valid appointment with a tax representative, ask the representative for the block extension date applicable to your accounting period. Enter the due date into your compliance calendar as an absolute deadline. Prepare the audited financial statements, the completed profits tax return, and all supplementary forms in time for the tax representative to review and submit them before the deadline. If you have no tax representative, file within one month of issue.