Annual Return vs. Profits Tax Return: What’s the Difference?

Q: How do annual returns differ from profits tax returns?

Annual Return (Form NAR1) – a once-a-year “who-we-are” update sent to the Companies Registry: directors, shareholders, registered address, share capital – no money figures. Profits Tax Return (Form BIR51/52) – a yearly “how-much-we-made” report sent to the Inland Revenue Department: audited financials, tax computation and schedules that decide your tax bill.

Q: Why do companies need to file both an annual return and a profits tax return?

Two separate regulators, two separate purposes: Corporate transparency – the Registry keeps public records current via the Annual Return. Tax accountability – the IRD uses the Profits Tax Return to assess (and collect) tax. Miss either one and each authority can hit you with its own fines or prosecution.

Q: Annual return vs PTR: which costs more to file?

Government filing fee: Annual Return costs HK $105 when filed on time (late fees rocket from HK $870 to HK $3,480). Profits Tax Return: No government filing fee. You’ll only pay for your audit/professional help and whatever profits tax the IRD assesses, so the real hit usually comes from the tax itself, not the form. (In pure paperwork terms, the Annual Return is the only one that actually costs money to lodge — HK $105 beats HK $0, but the PTR can be pricier once tax is factored in.)

Yip Yuk Ming

5 mins read

Published:

2 July 2025

Updated:

15 April 2026

Need help with your Annual Return and PTR?

Is an annual return the same as a profits tax return?

The short answer is no. The annual return is purely administrative and provides a snapshot of your company’s current details, such as corporate secretary, company directors, and shareholders. On the other hand, the Profits Tax Return (PTR) is for filing company taxes to the government and is handled by a different government body – the Inland Revenue Department (IRD).

Let’s discuss their differences more.

Our job is to help you stay compliant

Annual Return vs. Profits Tax Return comparison table

The requirements for an Annual Return are pretty straightforward, while the Profits Tax Return needs a lot more financial detail.

Here is the expanded table with the key requirements for Annual Return vs PTR.

Feature	Annual Return (AR)	Profits Tax Return (PTR)
What is it?	A yearly update of your company’s basic information filed with the Companies Registry. It tells the government who the directors and shareholders are.	A report calculating the tax you owe to the Hong Kong government based on your assessable profits..
Purpose	To keep the official record of your company’s structure up-to-date and ensure public information is current. Think of it as a ‘health check-up’ for your company’s administrative standing.	To figure out how much profit your business made and how much tax it needs to pay for the year.
Who do you file it with?	Companies Registry (CR)	Inland Revenue Department (IRD)
Forms Used	The prescribed form is the Form NAR1.	The specific form depends on your business type: BIR51 (for corporations), BIR52 (for partnerships), or BIR54 (for non-resident persons).
Filing Fee (on‑time)	Private company: HK $105 Public company: HK $140	No filing fee; tax is paid based on the assessable profits calculated.
Main Content	It includes your: Company name and registration number Registered office address Company type (private, public, etc.) Share capital information Details of directors, company secretary, and members Mortgages and charges (if any) It does not contain any financial figures or information about your profits.	This is a detailed financial filing. It must include your company’s Audited Financial Statements. These are tax computation showing how you calculated your tax liability and other supporting schedules. They typically include: Balance Sheet Profit & Loss Account
Key Requirements	You just need your company’s latest information: registered address, director and shareholder details, etc. No financial audit is needed for this.	You need your company’s financial statements to be audited by a Hong Kong Certified Public Accountant (CPA). You’ll also need a tax computation based on those audited figures.
Who needs to file?	All locally incorporated limited companies in Hong Kong must file one every year.	All businesses operating in Hong Kong that receive a Profits Tax Return from the IRD must complete and file it.
When is it due?	You need to file it within 42 days of the anniversary of your company’s incorporation date each year.	The due date depends on your company’s financial year-end. The IRD sends you the return, and you typically have one month to file it (though extensions are possible).
What happens if you’re late?	You’ll face late filing fees that increase over time. In serious cases, the company and its officers could face prosecution and fines.	The IRD may issue an estimated assessment (which is often higher than what you’d actually owe) and can take legal action to recover the tax and impose penalties.
What happens if you’re late?	Helpful guide: Business Compliance Penalties and Fines in Hong Kong
Detailed guide on filing	Annual Return Filing in Hong Kong	Filing Profits Tax Returns in Hong Kong
Strike‑off risk	The CR can eventually strike off (dissolve) companies that repeatedly fail to file their AR.	N/A
Audit exemptions	Not applicable to AR filings, but dormant companies/registered branch offices still need to lodge an AR even though they are exempt from preparing audited accounts.	Dormant companies and certain qualifying Hong Kong branches may request to file unaudited management accounts instead of audited financials, provided IRD approval is obtained.
Timing issue	N/A	The IRD issues PTRs aligned to each company’s financial year-end; returns therefore arrive throughout the year—not only at the start of “tax season.”

We get it. The audit requirement for the Profits Tax Return can feel like a major hurdle. That’s why we’re here—to connect you with the right people and make the process simple and stress-free.

How can Sleek help with your annual return and profits tax return?

Sleek simplifies the filing process with expert guidance tailored to your Hong Kong business needs. Explore how Sleek can assist with your Annual Return filing needs to ensure timely submissions and avoid penalties, a crucial part of business facilitation initiatives in Hong Kong.

Additionally, understand your obligations, including those related to the Mandatory Provident Fund, and optimize your submissions with Sleek’s services for Profits Tax Returns. This support helps you engage in public participation and global trade more effectively by maintaining impeccable financial records.

Harness the power of expert support to secure your compliance and enhance your capacity for business in/with Hong Kong today.

Build your business on a solid foundation

FAQs about Annual Returns vs Profits Tax Returns

How do annual returns differ from profits tax returns?

Annual Return (Form NAR1) – a once-a-year “who-we-are” update sent to the Companies Registry: directors, shareholders, registered address, share capital – no money figures.
Profits Tax Return (Form BIR51/52) – a yearly “how-much-we-made” report sent to the Inland Revenue Department: audited financials, tax computation and schedules that decide your tax bill.

Why do companies need to file both an annual return and a profits tax return?

Two separate regulators, two separate purposes:

Corporate transparency – the Registry keeps public records current via the Annual Return.
Tax accountability – the IRD uses the Profits Tax Return to assess (and collect) tax.

Miss either one and each authority can hit you with its own fines or prosecution.

Annual return vs PTR: which costs more to file?

Government filing fee: Annual Return costs HK $105 when filed on time (late fees rocket from HK $870 to HK $3,480).
Profits Tax Return: No government filing fee. You’ll only pay for your audit/professional help and whatever profits tax the IRD assesses, so the real hit usually comes from the tax itself, not the form.

(In pure paperwork terms, the Annual Return is the only one that actually costs money to lodge — HK $105 beats HK $0, but the PTR can be pricier once tax is factored in.)