Who this is for
- New companies that have just received their first Profits Tax Return
- Companies that receive a return every April and want deadline reminders and help preparing their filing information
- Companies with audited accounts that need them turned into a tax computation
- Companies doing business outside Hong Kong that want to understand offshore profits claims or foreign-sourced income exemption (FSIE) reporting
- Companies with employees, or directors drawing pay, that must file the Employer's Return (BIR56A / IR56B)
What's included
- Reminding you of filing deadlines and preparing your filing information for the return the Inland Revenue Department (IRD) has issued
- Preparing the tax computation and supporting schedules from the audited financial statements
- Completing the Profits Tax Return (BIR51) and any supplementary forms needed (for example S1 for the connected-entity list under two-tiered rates, or S19 for specified foreign-sourced income)
- Preparing supplementary forms and the return required by the IRD; the actual submission route is subject to applicable eligibility and authorisation
- Getting the director to sign the "Confirmation for Engagement of Service Provider to Furnish Return" (IR1476), if the service-provider route is used, applicable eligibility, channel and authorisation must first be confirmed
- Filing the Employer's Return (BIR56A and IR56B) and employee change notices such as IR56E, IR56F and IR56G
- Checking the tax and provisional tax on your assessment notice and reminding you of the payment dates
- Helping you reply to routine IRD enquiries about the return
What's not included
- The audit: the auditor's report must be signed by an independent certified public accountant (practising) (see our Bookkeeping & Audit Coordination service)
- Tax planning, offshore claim disputes, or representation in tax investigations or appeals
- Promising the outcome of any claim: the IRD decides whether to accept an offshore claim, the two-tiered rates or any other relief
- Personal tax (salaries tax, personal assessment) and property tax returns (ask us about these separately)
- Legal advice
Government / statutory fees
There is no government fee for filing a Profits Tax Return. The tax payable is whatever the IRD's assessment notice says.
| Item | Amount / rate | Official source |
|---|---|---|
| Two-tiered profits tax rates (corporations, from YA 2018/19) | 8.25% on the first HK$2,000,000 of assessable profits; 16.5% on the remainder | IRD: Profits Tax |
| Normal rate (corporations, where two-tiered rates do not apply) | 16.5% | IRD: Profits Tax |
| One-off reduction for YA 2025/26 | 100% of final profits tax, capped at HK$3,000 per case (legislation gazetted 22 May 2026) | IRD: 2026-27 Budget tax measures |
| Business Registration Certificate, 1-year / 3-year (commencing from 1 Apr 2026, levy included) | HK$2,350 / HK$6,170 | IRD fee table |
Note on the two-tiered rates: if a company has connected entities, only one nominated entity can elect the two-tiered rates for a year of assessment. The others pay 16.5% on all their profits.
Documents required
This is a general document checklist; confirm the applicable items and secure handover arrangements at consultation. Please do not send identity or accounting records through the website form; your consultant will arrange a secure handover.
- The Profits Tax Return (BIR51), or the notice to file, issued by the IRD
- Audited financial statements (statement of financial position, profit and loss account) and the auditor's report
- The year's accounting records, general ledger and trial balance
- A list of connected entities (if you elect the two-tiered rates and have connected entities)
- For an offshore profits claim: contracts, invoices, correspondence, where the people involved were based, and other evidence of where the profits came from
- For members of a multinational group receiving foreign interest, dividends, disposal gains or IP income: details of that income
- The Employer's Return (BIR56A) and employee pay details (if applicable)
- Form IR1476 signed by a director
Process and timeline
Case timing is confirmed during consultation and depends on documents, authorities and third parties. No completion or approval time is guaranteed; statutory deadlines require separate checking.
- Consultation: we look at your company and filing deadline, then send a quote
- You send us a copy of the return; we remind you of the deadline and list the information needed
- You provide the audited financial statements and any extra information
- We prepare the tax computation and a draft return
- A director reviews and signs (including IR1476)
- The return and supplementary forms are submitted through the confirmed authorised route
- Once the assessment arrives, we check the tax and remind you of the payment dates
Timing: depends on how complete your information is; we confirm it at the consultation. Offshore claims or IRD enquiries take longer.
Annual obligations and statutory deadlines
- A new company's first return: the IRD generally issues the first Profits Tax Return about 18 months after the date of incorporation. Taxpayers receiving their first return can file it within 3 months from the date of issue.
- Annual bulk issue: continuing businesses get their returns in a bulk issue on the first working day of April each year (the 2025/26 returns went out on 1 April 2026). They are generally due within 1 month from the date of issue.
- Block extension: the block extension arrangement only applies to cases with an appointed tax representative. For reference, the IRD's 2025/26 extended due dates by accounting date code are:
| Accounting date code | Paper filing | Electronic filing |
|---|---|---|
| "N" (1 Apr – 30 Nov) | No extension | 4 Jun 2026 |
| "D" (1 – 31 Dec) | 31 Aug 2026 | 2 Oct 2026 |
| "M" (1 Jan – 31 Mar) | 30 Nov 2026 | 30 Dec 2026 |
| "M" with a current-year loss | 1 Feb 2027 | 1 Feb 2027 |
- Supporting documents: a corporation with gross income files the audited financial statements and tax computation with its return. A dormant company under section 5 of the Companies Ordinance does not need to.
- Notifying chargeability: if you have chargeable profits but have not received a return, you must notify the IRD in writing within 4 months after the end of the basis period.
- Employer's Return: BIR56A is issued on the first working day of April and must be filed within 1 month from the date of issue. If you receive one, you must file it even if you have no employees, have not started business or have stopped trading.
- Record keeping: section 51C of the Inland Revenue Ordinance requires business records to be kept for at least 7 years.
- Late filing: if you miss the deadline, the IRD may issue an estimated assessment or take penalty action under section 80 or 82A of the Inland Revenue Ordinance, up to treble the tax undercharged.
FAQ
When will my new company get its first return?
The IRD generally issues the first Profits Tax Return about 18 months after the date of incorporation. A company receiving its first return can file it within 3 months from the date of issue.
Do the two-tiered rates apply automatically?
No. The company has to elect them in its return. If it has connected entities, only one of them can elect for a given year of assessment, and that entity must list all its connected entities carrying on business in Hong Kong on supplementary form S1, unless one member of the group is listed on the Stock Exchange of Hong Kong.
Do I have to apply for the 2025/26 tax reduction?
No. The IRD applies the 100% reduction, capped at HK$3,000 per case, in the 2025/26 final assessment. The reduction does not cover provisional tax, so pay your provisional tax on time.
My company made no profit or did no business. Do I still file the return I received?
Yes. Once you receive a return, you must file it on time. The IRD may not issue returns every year to businesses with no assessable profits or that have not started, but if it does issue one, you must file it. For dormant companies under section 5 of the Companies Ordinance, the IRD accepts returns without financial statements or other supporting documents.
All my business is outside Hong Kong. Is it tax-free?
Hong Kong taxes on a territorial source basis: only profits arising in or derived from Hong Kong are taxed. Where the profits come from depends on where the operations that produced them took place, which is a question of fact. You still file the return, report the offshore profits you have excluded and explain them. The IRD decides whether to accept the claim.
What is the foreign-sourced income exemption (FSIE), and does it affect my company?
FSIE only applies to entities that belong to a multinational enterprise (MNE) group. Specified foreign-sourced income (interest, dividends, disposal gains and IP income) that such an entity receives in Hong Kong is treated as Hong Kong-sourced and taxable, unless the entity meets an exception such as the economic substance, participation or nexus requirement. A purely local company with no overseas group members or permanent establishments is generally outside its scope.
Do I have to file my Profits Tax return electronically?
Right now, mandatory e-filing covers only the first-phase entities: Part 4AA entities of MNE groups with annual consolidated revenue of EUR 750 million or more, for YA 2025/26 onwards. Other companies can still file paper returns, but every supplementary form must be submitted electronically. If you e-file voluntarily, you can apply for an extra 1-month extension. The government's stated aim is full e-filing by 2030; follow the IRD's announcements for the timetable.
What happens if I file late?
The IRD may issue an estimated assessment and take penalty action under section 80 or 82A of the Inland Revenue Ordinance, up to treble the tax undercharged. If you think you will miss the deadline, deal with it early.
We have no employees. Do we still file the Employer's Return?
Yes, if you receive a BIR56A. File it within 1 month and state on the form that you have no employees.
Does HKESC take responsibility for my return with the IRD?
No. The company and its directors stay responsible for what the return says. We prepare it using your information and instructions; any service-provider submission requires prior confirmation of applicable eligibility, channel and authorisation, and we need Form IR1476 signed by a director.