- A financial year-end (FYE) is the date your company’s accounting year closes. In Hong Kong, companies choose their own FYE; there’s no single mandated company year-end.
- The two most common choices are 31 December (calendar / many overseas parents) and 31 March (aligns with the Hong Kong government tax year and the longest IRD filing extension bucket).
- Your first accounting period can run up to 18 months from incorporation. If directors don’t set a date, Cap. 622 defaults to the last day of the month of your first incorporation anniversary.
- The FYE sets the audit period and which profits tax filing bucket (N / D / M) you fall into once you have a tax representative.
- You can change your FYE later, but the resulting accounting period can’t exceed 18 months, and public companies or companies limited by guarantee must notify the Companies Registry within 15 days.
A Hong Kong company's financial year-end (FYE) is the date its accounting year closes. Companies choose their own FYE; the two most common dates are 31 December and 31 March.
- You choose it: directors set the primary accounting reference date under Cap. 622 (within 18 months of incorporation)
- First year: can run up to 18 months; first profits tax return usually issues about 18 months after incorporation
- Downstream effect: FYE sets the audit period and your IRD filing bucket (N / D / M)
- Change later? Possible by directors' resolution, with an 18-month cap on the resulting period
The financial year end in Hong Kong is one thing many founders get wrong before they even start: they assume the government sets it, or that it must match the 1 April tax year. It doesn’t. You choose your own year-end date, and most companies pick either 31 December or 31 March.
Get the choice right and your audit and tax calendar stay predictable. Get it wrong, or leave it to the Cap. 622 default, and your first year can be squeezed into an awkward deadline.
In this guide, you’ll learn,
- What a financial year-end means in Hong Kong, and whether you choose it
- Why most companies pick 31 December or 31 March
- How long the first financial year can run
- How the FYE drives audit and tax deadlines
- How to choose or change your FYE
What is the financial year-end (FYE) in Hong Kong?
A financial year-end is the date your company’s accounting year closes. Under the Companies Ordinance (Cap. 622), that date is your accounting reference date: the end of each accounting reference period for which you prepare audited financial statements.
It is useful to keep three separate clocks in mind. They can fall on similar dates, but they do different jobs.
|
Clock |
What it controls |
Typical position |
|
Financial year / FYE |
The accounting period in your financial statements and audit |
A date chosen by the company, often 31 December or 31 March |
|
Year of assessment |
The period used by the Inland Revenue Department (IRD) for profits tax assessment |
1 April to 31 March |
|
Annual return date |
Companies Registry annual-return cycle for a private company |
Incorporation anniversary, with NAR1 due within 42 days |
In other words, an FYE is not automatically the calendar year or the IRD tax year. It is the accounting cut-off date your company uses to turn day-to-day records into financial statements.
Do Hong Kong companies choose their own financial year?
Yes. Directors choose the company’s financial year-end. There is no single mandated company year-end in Hong Kong: directors set the primary accounting reference date, a date falling within 18 months after incorporation (Cap. 622, sections 369(5) to (7)).
If directors don’t specify a date, the default is the last day of the month in which the first anniversary of incorporation falls. After that, each accounting reference period is normally 12 months, ending on the anniversary of that date, unless you shorten or extend it under section 371.
That means two companies incorporated on the same day can end up with completely different year-ends, audit calendars, and tax filing buckets.
Why are 31 December and 31 March the most common choices?
Both dates are valid. The better option depends on who needs your numbers, when your business is busiest and how much time your finance team needs after close.
|
FYE |
Often suits |
Why |
|
31 December |
Calendar-year groups, overseas parents, investors reporting on a calendar year |
Aligns with many foreign parents and international reporting |
|
31 March |
Local SMEs wanting the longest filing runway |
Aligns with the Hong Kong government tax year (1 April to 31 March) and falls in the IRD M-code extension bucket |
|
Other date |
Seasonal businesses, alignment to a non-Dec/Mar parent |
Allowed; still drives the audit period and tax bucket |
How to make the choice
For most first-time founders, start with reporting alignment rather than tax timing. A mismatched FYE can create recurring consolidation work, extra audit procedures and avoidable questions from investors or a holding company.
- Match your group: If a parent company or lead investor has a reporting date, matching it is usually the simplest option.
- Avoid peak operations: Choose a quieter period for stocktakes, reconciliations and auditor queries. A retailer may prefer not to close during its busiest sales month.
- Check your filing runway: If a tax representative uses the IRD block extension scheme, accounting dates from January to March generally fall into M-code, while December dates fall into D-code and April to November dates into N-code.
- Confirm adviser capacity: Ask your accountant and auditor whether the proposed close falls into their busiest season and when they need records from you.
A 31 March FYE does not make your tax year and financial year the same thing. The IRD still assesses profits on the year of assessment (1 April to 31 March). Your FYE only decides which accounts feed that assessment and which block-extension code you get when a tax representative files for you.
How long can your first financial year be?
Your first accounting period can be less than or more than 12 months, but it must not exceed 18 months. This lets a new founder adopt a convenient recurring FYE without rushing into an immediate first close.
|
Incorporation date |
Chosen FYE |
First accounting period |
|
1 May 2026 |
31 December 2026 |
About eight months |
|
1 October 2026 |
31 December 2027 |
About 15 months |
|
1 October 2026 |
31 December 2028 |
Not permitted — exceeds 18 months |
The IRD commonly issues a first profits tax return around 18 months after incorporation, so do not treat a long first period as a reason to delay bookkeeping. Keep invoices, bank records, payroll records and expense evidence organised from day one so your first audit is not a reconstruction exercise.
How does your FYE set your audit period and tax deadline?
The FYE sets two clocks.
- Audit period: your audited financial statements cover the accounting reference period ending on your FYE. That is the period laid before members at the AGM, or circulated with a written resolution.
- Profits tax filing bucket: once you have a tax representative, the IRD’s block extension scheme groups returns by accounting date code.
Broadly, the three buckets work like this:
- N-code, year-ends from April through November: the shortest window, often no meaningful extension beyond the early-May deadline.
- D-code, December year-ends: a mid-year extension, typically into August.
- M-code, January to March year-ends: the longest extension, typically into November, with current-year loss cases able to go later still.
For the current year of assessment’s exact dates, see how your FYE sets your tax deadline. Without a tax representative, bulk returns issued in April are generally due within one month of issue.
Can you change your financial year-end?
Yes, subject to Cap. 622 section 371. Directors can alter the accounting reference date by resolution, but the rules constrain it:
- The accounting reference period that results from the change must not exceed 18 months
- You generally can’t change it once the deadline for presenting the accounts for that period has passed
- A second or later extension usually needs member approval, unless the change aligns the company with its holding company’s FYE
- Public companies and companies limited by guarantee must deliver notice of the change to the Companies Registry within 15 days
Changing FYE reshuffles your audit and tax dates. Tell your company secretary and accountant before you pass the resolution, and expect the next profits tax return to reflect the new period.
You don't file a special form with the IRD just to set your first FYE. The IRD learns your year-end from the audited accounts attached to your profits tax return, and a later change shows up the same way. Don't wait for an IRD approval letter that never comes.
How Sleek manages your year-end
Choosing the FYE is a five-minute decision when someone frames the options. Getting the first period, audit, and tax filing wrong is a year-long headache. Sleek handles both.
With Sleek, you can:
- Set the FYE at incorporation: we pick a date that fits your parent, business cycle, and the 18-month first-period rule, and keep the accounting reference date consistent in the registers.
- Run the year-end cycle: our accounting services prepare the accounts, coordinate the audit, and file the profits tax return in the right bucket.
- Keep Registry filings separate and on time: the company secretary handles NAR1 and officer changes on the incorporation anniversary, so FYE and annual-return dates don’t get confused.
- Change FYE cleanly later: if you join a group or need a new date, we prepare the directors’ resolution, check the 18-month cap, and realign the tax calendar.
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