# What is Tax Year (Hong Kong)?

Country: Hong Kong

The Hong Kong tax year (year of assessment) runs from 1 April to 31 March. However, companies may choose any date as their accounting year-end. The Profits Tax is assessed based on the company's accounting period ending within the relevant year of assessment.

## Example

A company with a 31 December year-end has its accounts for the year ended 31 December 2025 assessed in the 2025/26 year of assessment (1 April 2025 to 31 March 2026). The BIR52 is issued in April 2026 covering that period.

## How Tax Year (Hong Kong) works in Hong Kong

**The year of assessment**

The Hong Kong year of assessment runs from 1 April to 31 March and is referred to as (for example) 2025/26. The IRD levies taxes on income and profits earned during the year of assessment, assessed based on the accounting period falling within that year.

**Company accounts and the tax year**

Unlike some jurisdictions, Hong Kong allows companies to choose any year-end date. Popular choices:
- 31 March: matches the HK tax year, simplifying annual filings
- 31 December: aligns with many international group companies and the calendar year
- 30 June: common among companies formed mid-year

The choice of year-end affects when the BIR52 is issued (typically 12 months after year-end) and therefore when the Profits Tax is payable.

**First year treatment for new companies**

For a newly incorporated company, the first Profits Tax Return covers the period from incorporation to the first accounting year-end. If the accounting period spans more than 18 months, the IRD may split the return into two assessment periods.

For example, a company incorporated on 1 July 2024 with a 31 December year-end: its first accounts run from 1 July 2024 to 31 December 2024 (6 months). The first BIR52 is issued in April 2026 (approximately 18 months after incorporation). The second year covers 1 January 2025 to 31 December 2025.

**Extended deadlines for specific year-ends**

The IRD's block extension system gives extended filing deadlines to companies represented by enrolled tax firms:
- April to November year-ends (Code N): no extension, 1 month from issue (about 1 May)
- December year-ends (Code D): block extension to mid-August
- January to March year-ends (Code M): block extension to mid-November, with loss cases extendable to 1 February on application

**Salaries tax year**

The salaries tax year also runs 1 April to 31 March. Employers file the Employer's Return (IR56B) by 1 May, covering all remuneration paid in the year ending 31 March. Individual salaries tax returns (BIR60) are issued in May and typically due by 2 June (online) or 2 June (paper), with extension to 2 November for eTAX filers.

**Overlap with overseas tax years**

For companies that are also tax-resident overseas (e.g., a holding company in the UK), the different year-ends can create complexity in transfer pricing and group reporting. Most UK groups with HK subsidiaries operate a December or March year-end for the HK entity to simplify consolidation.

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

## Related terms

- [Profits Tax (Hong Kong)](https://accounts-os.com/hk/glossary/profits-tax-hk)
- [BIR52 (Profits Tax Return)](https://accounts-os.com/hk/glossary/bir52-hk)
- [Salaries Tax (Hong Kong)](https://accounts-os.com/hk/glossary/salaries-tax-hk)