Everything You Need to Know About the HK Tax Filing Deadline

HK tax filing deadline for profit tax return

The standard HK tax filing deadline is 2 May 2024 for companies whose financial year ends between 1 April 2023 and 30 November 2023. If the company’s financial year ends between 1 December 2023 and 31 December 2023, the profits tax filing is until 15 August 2024 to file.

Sole proprietorships and partnership businesses also need to mark their calendars. Those with a year-end date between 1 April 2023 and 30 November 2023 must file by 2 May 2024, while those with a year-end date between December 1, 2023, and 31 March 2024 have until 2 May 2024 to submit their profits tax returns.

Extensions and late filing penalties

If you find yourself in a bind and can’t meet the HK tax filing deadline, don’t panic. You can apply for an extension with the Inland Revenue Department (IRD). They may grant an extra month for companies and up to three months for unincorporated businesses.

But here’s the catch: late filing of profits tax returns comes with consequences. You’ll face an initial penalty of 10% of the assessed tax, capped at HK$50,000. If your return is still outstanding six months after the due date, brace yourself for an additional 10% penalty on the unpaid tax.

Changes in 2023-2024 profits tax return forms

The 2023-2024 versions have been updated to reflect the latest Hong Kong SAR tax regime changes.

Be prepared to fill out new sections on your forms for reporting income and qualifying profits that can get tax concessions under the expanded foreign-source income exemption (FSIE) regime. You’ll also need to meet stricter reporting rules for earnings from any transactions tied to preferential regimes in aircraft leasing or ship leasing activities and all other eligible intellectual assets, respectively.

Types of Hong Kong tax returns and who should file them

Let’s take a closer look at the main types of tax returns and who needs to file them.

1) Individual tax return

Anyone making taxable income in Hong Kong, whether it’s through a job (Salaries Tax), running a business (Profits Tax), or owning property (Property Tax), must file an Individual Tax Return using Form BIR60. This includes workers, entrepreneurs with their own businesses, landlords, and individuals opting for personal assessment.

Don’t forget, the deadline for filing your Individual Tax Returns is typically May 2nd after the assessment year ends.

2) Property tax return

Do you own a property in Hong Kong that generates rental income? Then you’ll need to file a Form IR56M. The deadline is typically 2 May following the end of the assessment year.

To choose a personal assessment, just fill out the specific sections on your Individual Tax Return.

3) Profits tax return for sole proprietorships and partnerships

Sole proprietorship and partnership businesses engaged in a trade, profession, or business in Hong Kong must file a Profits Tax Return (Form BIR52). The HK tax filing deadline is 2 May, following the end of the basis period for the year of assessment.

Like property owners, partnership and sole proprietorship businesses can choose personal assessment by completing the right sections of their Individual Tax Return.

4) Salaries tax

If you’re an employee deriving income from an office, employment, or pension in Hong Kong, you’re subject to salary tax. Your employer is responsible for reporting your remuneration and filing an Employer’s Return (Form IR56B) for each employee.

Remember, the HK tax filing deadline for Employer Returns is usually May 2nd, following the assessment year’s end. If you get an Individual Tax Return, fill it out and submit it with details of your job income and any other taxable earnings.

Required documents and information for Hong Kong tax filing

Preparation makes everything smoother when it comes to tax filing.

This section contains the key forms, documents, and details you’ll need to have on hand for tax filing.

Supplementary forms (S1 to S18 and S20)

Depending on your business nature and the types of income you earn, you may need to complete and submit supplementary forms along with your profits tax returns. These forms cover various aspects, from manufacturing profits (Form S1) to approved charitable donations (Form S2), interest income (Form S3), and intellectual assets income (Form S16).

Take the time to carefully review the instructions and requirements for each required supplementary form that applies to your situation. It’s better to be thorough than to risk missing something important.

Other forms (IR1478, IR1481 and IR1482)

In addition to the main tax return and supplementary forms, you may need to submit other forms and uploaded data files based on your specific circumstances. Form IR1478 is used for reporting deemed assessable profits under the Comprehensive Double Taxation Agreement (CDTA) between Hong Kong SAR and Mainland China.

If you’re claiming tax relief under a CDTA or tax information exchange agreement (TIEA), you must fill out Form IR1481. And if you’re reporting specified foreign-sourced income exempted from profits tax under the FSIE regime, Form IR1482 is your go-to.

Control list

The Control List is a handy checklist you must complete and send with your profits tax return. It helps ensure that you’ve included every necessary form, supplementary form, and supporting document for tax filing purposes.

Documents for foreign-sourced income

If you’re claiming tax exemption or relief for foreign-sourced income under the FSIE regime or a CDTA, you’ll need to provide supporting documents. These may include tax residence certificates, audited financial statements, foreign tax returns, and evidence of foreign tax paid.

Remember that the specific documentation requirements can vary depending on the nature of the income and the provisions of the relevant tax agreements.

Methods for filing Hong Kong tax returns