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Profits Tax in Hong Kong

When should I file the Profits Tax Return Form?

For newly registered Hong Kong Company, your company will receive the first profits tax return 18 months after the date of incorporation. If your company is more than 2 year old, your company shall receive a profits tax return form on the first working day of April each year. Upon receipt of the Profits Tax Return form, you should fill in your data and attach all required supplementary forms and evidence within 1 month.

Extension for submission of Tax Returns

We understand that many entrepreneurs have busy schedule. Sometimes there are just too many transactions and you need time to retrieve data from accounting reports and books. If you need more time to prepare your tax filing, Get Started HK can help to apply for an extension in submitting the profits tax return. The due date can normally be extended as follows. If you need more guidance, feel free to contact us and speak to our professional tax advisors at info@getstarted.hk.

Financial year end date

Extended Due Date

For N Code Returns
(Year-end between 1 April to 30 November)

End of June

For D Code Returns
(Year-end between 1 to 31 December)

Mid of August

For M Code Returns
(Year-end between 1 January to 31 March)

Mid of November

For M Code Returns
and Current Year Loss Cases

1 February (next calendar year)

What are deductible expenses?

In general, all outgoings and expenses that help your company to generate a chargeable profits are allowed as deductions, except for expenses of a domestic or private nature and capital expenditure.

Let’s take business trip as an example in illustrating tax deductible expenses. When you travel to another country to meet a potential or existing client, you will incur expenses such as accommodation, transportation and business meals. All these expenses are tax deductible. Conversely, if you choose to stay 3 more days for fun after you complete your work,  all the expenses in the additional 3 days will be regarded as private in nature. You cannot classify this as a company deductible expenses.

Is there any exemption on the audit requirement for small business?

No. There is no exemption. A small business must submit the profit tax form and prepare audited reports on time. While a small business may not need to submit the audited report along with the form immediately. Data on the profit tax form should be 100% accurate and those data shall be based on the audited report. If you are interested to learn about the regulations in Hong Kong, customers can refer to section 405 of the Companies Ordinance for details.

Is Offshore company required to file profit tax form?

Yes. Regardless whether a company is onshore or offshore, a company must submit the profit tax form to the Hong Kong Inland Revenue Department on time. Even if you have no customers, suppliers and staff in Hong Kong, you still have to show evidence to the Hong Kong government. If they determine that your company is offshore, then your company is not subjected to Hong Kong corporate rate. The tax rate will then be 0%. The offshore status is based on a hard practical matter of fact.