Annual Profits Tax Return (BIR52)
Annual Profits Tax Return filed with the IRD. Deadline varies by accounting year-end: April year-ends by 15 August, November year-ends by 15 May, December year-ends by 15 August, all others within 1 month of issue.
Who this applies to
- All Hong Kong private and public limited companies
- Partnerships and sole traders carrying on business in Hong Kong
- Branches of overseas companies carrying on business in Hong Kong
What to file
BIR52 Profits Tax Return, together with audited financial statements, tax computation showing adjustments from accounting profit to assessable profit, depreciation allowance schedules, and any offshore profits claim supporting letter.
How to file
By post or by hand to the Inland Revenue Department, Revenue Tower, 5 Gloucester Road, Wan Chai. Electronic filing via eTAX is available for simplified cases but most corporations file by paper with hard-copy accounts.
Payment due
Profits Tax is payable in two instalments. The first demand note (provisional tax, typically 75% of prior year's tax) issues with the return. The balance instalment issues when the assessment is finalised, typically 1 month after assessment is raised.
Penalties for missing this deadline
Late filing: estimated additional tax of up to 3x the assessable tax, plus a fixed penalty. The IRD issues an estimated assessment at a high level to incentivise compliance. Interest on late tax at 8.25% per year applies.
Filing checklist
- Confirm the relevant filing deadline by year-end type
- Ensure audited financial statements are completed before filing
- Prepare the tax computation starting from accounting profit
- Identify and disallow non-deductible expenses (entertainment, capital items)
- Compute depreciation allowances (initial and annual) on qualifying plant
- Apply two-tier rates correctly (8.25% on first HKD 2M, 16.5% above; confirm only one group entity claims the lower rate)
- Prepare any offshore profits claim letter with supporting evidence
- File BIR52 with accompanying documents by the relevant deadline
Documents you'll need
- Completed BIR52 form (or eTAX equivalent)
- Audited financial statements (mandatory for all HK private limited companies)
- Tax computation showing profit adjustments
- Depreciation allowance schedules (plant and machinery, industrial and commercial buildings)
- Offshore profits claim letter and supporting documentation (if applicable)
- Transfer pricing documentation for related-party transactions exceeding prescribed thresholds
Common mistakes to avoid
- Filing without audited accounts (audit is mandatory for all HK private companies, unlike UK/AU)
- Claiming the lower 8.25% rate for multiple companies in the same related group (only one entity per group may benefit)
- Not carrying forward tax losses from prior years (HK losses carry forward indefinitely but do not carry back)
- Missing the extended block-extension deadline by not engaging a registered tax representative
Never miss a Hong Kong deadline
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