Form IRC3111 Notifying Chargeability to Profits Tax Hong Kong

Form IRC3111 Notifying Chargeability to Profits Tax Hong Kong

Form IRC3111 notifies the Inland Revenue Department (IRD) that a person or business has become chargeable to profits tax under the Inland Revenue Ordinance (Cap. 112). This is not a tax return. It is a duty-to-notify form that triggers the IRD’s assessment process for a new taxpayer.

File the form when a person begins carrying on a trade, profession or business in Hong Kong, or when a previously non-chargeable entity becomes liable for the first time. The IRD uses the IRC3111 notice to open a tax file and determine whether a profits tax return (BIR51, BIR52 or BIR54) will be issued.

Who Must File Form IRC3111

Any person chargeable to profits tax for the first time must notify the IRD using Form IRC3111. The Inland Revenue Ordinance (Cap. 112) defines a person as chargeable if they carry on a trade, profession or business in Hong Kong and derive assessable profits arising in or derived from Hong Kong.

The obligation applies to sole proprietors commencing a new business, partnerships newly carrying on a trade in Hong Kong, corporations that start business operations, and non-resident persons with Hong Kong-sourced business income.

Do not file IRC3111 if you have already received a profits tax return (BIR51, BIR52 or BIR54). The return itself constitutes notification. IRC3111 is only for those the IRD has not yet identified as chargeable.

IRC3111 Profits Tax Notification

The notification must be in writing on the prescribed form IRC3111, which the IRD provides on its website. Complete it fully. You must provide details of the business, the date of commencement, the nature of the trade or profession, and your Business Registration Certificate number under Cap. 112.

Supporting documents are not required with the IRC3111 itself. Retain records of business income and expenditure for at least seven years after the transaction.

File by post or in person to the IRD’s office. There is no electronic filing channel for IRC3111 at present. The IRD will acknowledge receipt and issue a Tax File Number or Business Registration Number if you do not already have one.

Hong Kong Chargeability to Tax Form

IRC3111 is the form by which a person declares they are “chargeable” to profits tax. Chargeability means the person has a legal liability to pay profits tax, even if no tax is ultimately payable because of losses or allowances.

A person becomes chargeable on the first day they carry on a trade, profession or business in Hong Kong. For a corporation, this is the date of incorporation if the company immediately begins trading, or the date it first enters into revenue-generating activities.

For a sole proprietor or partnership, the commencement date is when the business first holds itself out as carrying on a trade. That includes signing a lease for business premises, obtaining a Business Registration Certificate, invoicing clients, or incurring business expenses. A person with assessable profits of nil for a year of assessment remains chargeable and must still notify the IRD if required.

IRC3111 Filing Hong Kong

Form IRC3111 must be filed with the Inland Revenue Department within four months after the end of the basis period for the year of assessment in which the person first becomes chargeable.

The basis period is the accounting period for which the profits are computed. For a new business, the first basis period runs from the date of commencement to the following 31 March (or the accounting date, if different and approved by the IRD).

Miss the deadline and the IRD may impose a penalty of up to HK$10,000 under section 80(1) of Cap. 112. Prosecution is possible for repeated or wilful failure.

Hong Kong Profits Tax Notification Deadline

The four-month deadline is calculated from the end of the basis period, not from the date of commencement. This is a common point of confusion.

A company that incorporates on 1 January 2026 and adopts a 31 December accounting date has a first basis period of 1 January 2026 to 31 December 2026. The IRC3111 must be filed by 30 April 2027 (four months after 31 December 2026). If the company adopts a 31 March accounting date instead, the basis period ends on 31 March 2027, and the deadline is 31 July 2027.

The notification deadline is separate from the profits tax return deadline. Once the IRD opens your file, it will issue a return with its own filing date, one month from issuance.

Failure to Notify and Penalties

Failing to file Form IRC3111 on time can lead to a penalty under section 80(1) of Cap. 112 of up to HK$10,000 per chargeable year. Additional tax under section 82A: up to three times the amount of tax undercharged, if the failure was with intent to evade tax. Late filing surcharges apply if the IRD assesses you on estimated profits without the benefit of your actual figures.

If you realise you should have filed IRC3111 in an earlier year, submit the notification as soon as possible. The IRD may waive penalties if you can show a reasonable excuse for the delay.

Contrast with Profits Tax Returns (BIR51, BIR52, BIR54)

IRC3111 is not a tax return. It is a notification only. The IRD will issue the appropriate profits tax return once it processes the notification: BIR51 for corporations, BIR52 for persons other than corporations (sole proprietors and partnerships), and BIR54 for non-resident persons.

The profits tax return is a detailed computation of assessable profits, deductions and tax payable, issued annually or on occasion. IRC3111 is a one-time notification form for the first year of chargeability. If you have already been issued a profits tax return, do not file IRC3111. File the return instead.

Practical Steps

Register your business with the under Cap. 112. A Business Registration Certificate is a prerequisite for IRC3111. Obtain Form IRC3111 from the IRD website or your tax adviser. Complete the form with your details, including the commencement date and nature of business. File within four months of the end of your first basis period. Keep a copy of the filed form and the IRD’s acknowledgment for your records.

If you are uncertain whether you are chargeable, seek advice from a qualified tax representative. The IRD provides guidance notes with the form, but does not give individual opinions.

Where to Get Form IRC3111

The official form index is at the Inland Revenue Department’s website:

Inland Revenue Department forms index:
https://www.ird.gov.hk/eng/paf/bus.htm

Always download the current version. The IRD revises forms periodically, and a stale copy may be rejected.