Filing Your Profits Tax Return

The answer first

The Inland Revenue Department issues Profits Tax Returns (Form BIR51 for corporations) around the beginning of April each year. A return must be filed by the deadline stated on it, normally one month from issue, or a later date if the company has a tax representative under the Block Extension Scheme. A return must be filed when issued, even if the company made a loss or had no income.

Profits tax is charged only on profits arising in or derived from Hong Kong, at 8.25% on the first HK$2 million of assessable profits and 16.5% on the rest for corporations. A new company usually receives its first return about 18 months after incorporation.

At a glance

Form: BIR51 (corporations), with supplementary forms where relevant
Issued: Around the beginning of April each year
Standard deadline: 1 month from the date of issue
With a tax representative: Extended dates under the Block Extension Scheme, depending on year end
Supporting documents: Audited financial statements and a tax computation
Corporate tax rates: 8.25% on the first HK$2 million; 16.5% on the remainder (one entity per connected group can use the lower tier)

Deadlines

Year-end code	Accounting year ends between	Block extension date for 2025/26 returns
N	1 April and 30 November	4 May 2026
D	1 and 31 December	17 August 2026
M	1 January and 31 March	16 November 2026 (later for loss cases)

Please confirmBlock extension dates change slightly each year. The first return issued to a new company usually allows longer than one month, but the deadline printed on the return is the one that applies. We confirm the date for each return when it is issued.

What you file

The return itself (BIR51), signed by a director or other authorised officer.
Audited financial statements for the basis period.
A tax computation reconciling accounting profit to assessable profit.
Supplementary forms where they apply, for example for offshore claims, related-party transactions, foreign-sourced income or group matters.

Some small corporations are not required to submit the financial statements and computation with the return, but they must still prepare them and keep them available. We confirm what applies for each return.

Adjustment in the tax computation	What it means
Non-taxable income	Income not arising in Hong Kong, capital gains, and certain dividends are generally not taxable
Non-deductible expenses	Private or capital expenditure, and expenses not incurred in producing taxable profits
Depreciation allowances	Accounting depreciation is replaced by tax depreciation allowances
Losses brought forward	Tax losses can generally be carried forward without time limit and set against future profits

After you file

The Inland Revenue Department issues a notice of assessment, usually combined with provisional tax for the following year.
Provisional tax is normally payable in two instalments, roughly 75% and then 25%, and is credited against the following year's final tax.
You can object to an assessment in writing within 1 month of the date of the notice.
You may apply to hold over provisional tax in specified circumstances, for example if profits are expected to fall significantly. Strict time limits apply.
The Department may raise enquiries or a field audit; keep records for at least 7 years.

Penalties

Default	Possible consequence
Failing to file on time without reasonable excuse	Fine up to HK$10,000, plus up to three times the tax undercharged (section 80(2)); estimated assessment
Incorrect return or omission without reasonable excuse	Additional tax of up to three times the tax undercharged (section 82A)
Late payment of tax	Surcharges on the unpaid tax and recovery action

Key takeawayA company that has made no profit, or has stopped trading, must still file every return issued to it. Silence is treated as non-compliance, not as a nil return.

How DBMS Global can help

Preparing the tax computation and Profits Tax Return from your audited financial statements.
Acting as your tax representative, so that block extension dates apply.
Checking assessments, provisional tax and hold-over opportunities, and filing objections on time.
Coordinating with specialist tax advisers where offshore claims, FSIE or group issues arise.

This guide is general information, not tax advice. Your tax position depends on your facts and should be confirmed by a Hong Kong tax adviser or CPA.

Official references