Profits Tax Return

The IRD would issue the very first Profits Tax Return (PTR) of the company approximately after 18 months of incorporation. The subsequent Profits Tax Returns would be issued every 12 months after that. The company is obligated to fill and submit the Profits Tax Return.

The PTR is normally issued in April or May after the fiscal year in Hong Kong (31st of March) has concluded, and is due within one month after issuance. This can be extended up to 6 months upon request by the company to the IRD.

Even if the company conducts business outside of Hong Kong, it still needs to provide it’s accounts to be submitted to the Hong Kong Government, and request for a profits tax exemption. This Hong Kong Tax filing is given with a set of audited account to the IRD to figure out the amount of tax necessary to pay in respect of the basis period.

Each company is responsible to submit the accounts accurately and in a timely fashion. There will be penalties for the late submission of penalties. In the case the PTR is not filled for an extended amount of time, there may be further penalties and court summons for the company for this non-submission of the PTR.

If you require assistance in filing the Profits Tax Return for your company, Startupr can help with the process and filings of the PTR. We provide professional bookkeeping and taxation services. Contact us for more information or consultation with our staff for your company.