# Annual Profits Tax Return (BIR52)

Country: Hong Kong
When: IRD issues BIR52s in bulk each April. Filing deadlines by year-end (under the IRD Block Extension Scheme for tax-representative clients): year-ends from 1 April to 30 November (Code N): no extension, due one month after issue, about 1 May of the following year; December year-end (Code D): mid-August of the following year (17 August 2026 for 2025/26); January to March year-ends (Code M): mid-November (16 November 2026 for 2025/26), with loss cases extendable to 1 February on application. The IRD confirms the exact dates each year. Unrepresented companies: 1 month from date of issue.

Annual Profits Tax Return filed with the IRD. Deadline varies by accounting year-end: year-ends from 1 April to 30 November (Code N) are due one month after issue, about 1 May; December year-ends (Code D) are due mid-August; January to March year-ends (Code M) are due mid-November.

## 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.

## What happens if you miss it

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.

## Submission 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 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

Source: https://www.ird.gov.hk/eng/tax/bus_pft.htm