Tax Deadline is Around the Corner!
Hong Kong taxable period runs from 1st April to 31st March, businesses need to start preparing their income statements, applying for exemptions and keeping track of all their expenses well ahead of time.
The tax system in Hong Kong is highly beneficial for both businesses and individual taxpayers. The only time you will be taxed in Hong Kong is if your income comes from doing business, which is currently 16.5% of profits. If your company is based in Hong Kong but the money is earned outside of the region, it won’t have to pay taxes.
What you’ll learn:
What is the Tax Deadline?
Profit Tax Return
The Profits Tax Return will be issued by the Inland Revenue Department (IRD) to active partnership businesses and corporations at the beginning of April each year. Companies with different year-end dates will have separate deadlines for filing their Profits Tax Return. Please see the deadlines below, both standard and extended.
|Year-End Dates Fall Within||Standard Deadline||Extended Deadline|
|1st April – 30th November (N code)||2nd May of next year||No extension|
|1st – 31st December (D code)||13th August of next year||No extension|
|1st January – 31st March (D code)||15th November of the same year||31 January of next year for companies suffering statutory loss*|
Tax Returns for individuals
Each year, the Inland Revenue Department will mail tax returns to individuals in early May. The deadline for filing Tax Returns will vary depending on whether or not the individual has a sole proprietorship business. The following are the deadlines:
|Sole Proprietorship||Standard Deadline||Extended Deadline|
|With sole proprietorship||31st July||2nd October|
|Without sole proprietorship||1 month from the issue date||30th June|
Non-Receipt of Tax Returns
If you have received a tax return for every year in the past but not receiving a tax return for this current year, please call 187 8022 to check whether one has been issued to you. If you would like to get a duplicate tax return, you may visit the Enquiry Service Centre at 1/F, Revenue Tower, 5 Gloucester Road in Wan Chai during office hours. You can check whether there are any unfiled tax returns in the Tax Position Section of your eTAX Account 24/7. You must notify the IRD within one month if you move to a new address.
Penalty for Late Tax Filing
If you don’t file your tax returns by the specified due dates or extended due dates, the Inland Revenue Department will issue estimated assessments and begin penalty proceedings under Section 80(2) or 82A. If the taxpayer is found to be in violation, they will be fined a maximum of HK$25,000 as well as an additional tax that does not exceed three times the amount of tax owed. For more details, refer to our article: Hong Kong Audit & Tax Filing: The Ultimate Guide.
How can FastLane help?
We hope this blog has provided you with the information needed to file your taxes by the deadline. Filing taxes is a confusing and daunting process, but it doesn’t have to be. Fastlane has helped over 500 companies with their tax filings over the years. In addition to filing your taxes, we can also help you with accounting, payroll, company secretarial and company formation services.
We would be more than happy to help you too. So why not get in contact with us now? We promise to make the whole experience as easy and painless as possible.