- Osome Blog HK
- Hong Kong Tax Year and Deadlines
Hong Kong Tax Year and Key Tax Deadlines for Businesses
- Modified: 7 March 2025
- 6 min read
- Money Talk
Heather Cameron
Author
Heather is here to inform and inspire our readers. Boasting eight years in the world of digital marketing, working in diverse industries like finance and travel, she has experience writing for various audiences. As Osome’s resident copywriter, Heather crafts compelling content, including expert guides, helpful accounting tips, and insights into the latest fintech trends that will help entrepreneurs, founders and small business owners in Hong Kong take their businesses to the next level.
Sherman Ieong
Reviewer
Sherman Ieong is our Accounting & Tax Manager based in Hong Kong. She is on hand to help our writers level-up our blog posts and guides by making sure the information is accurate, informative and inspiring. Osome’s all-in-one accounting services make managing tax effortless - and that’s exactly what Sherman ensures we do with our Hong Kong-focused blog content, applying her knowledge of day-to-day bookkeeping, monthly financial reporting, Profits Tax Returns and much more.
It's time to get ready for a calendar of key deadlines to add to your calendar! Knowing the tax deadlines can help you avoid penalties and non-compliance, so you can have peace of mind running your core business.
Read on to find out all you need to know about Hong Kong’s taxes, and the important Hong Kong tax dates for a small business like yours.
Overview of Hong Kong's Corporate Tax Rate
Hong Kong adopts a territorial system of taxation. This means that tax is payable on profits derived from or arising in a business, profession, or trade in Hong Kong. If profits are derived from a source outside of Hong Kong, profits tax will not be applicable.
This territorial principle means that residents and non-residents are regarded in the same manner.
Example
For instance, if you are a Hong Kong resident with profits derived from outside of Hong Kong, you will not have to pay profits tax. Similarly, if a non-resident makes a profit from Hong Kong, they will have to pay profits tax.
Who Should File Tax Returns in Hong Kong?
1 Newly registered businesses
All companies that are newly incorporated will have to file a profits tax return. Business owners will receive their first corporate tax return approximately 18 months from their company incorporation date, or commencement of business.
The companies have 3 months from the issued date to file the corporate tax return and the necessary supplementary forms.
2 Continuing businesses
For continuing businesses, they will receive the corporate tax return on the first working day of April every year.
The filing deadline depends on the company’s financial year end (FYE), with different deadlines applying to different FYEs. We’ll cover these deadlines later in the article.
3 Freelancers and the self-employed
Are you a partner of a partnership business or sole proprietor? If you’re self-employed or freelancing and earning an income in Hong Kong, you have a tax obligation.
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What Is the Income Tax Basis Period in Hong Kong?
In Hong Kong, corporate income tax is assessed in relation to a tax year or Year of Assessment (YA). The tax year starts on 1 April in a year, and ends on 31 March the following year. Therefore, the year ended 31 March 2025 is known as Year of Assessment 2024-25.
What Is the Profits Tax in Hong Kong?
Profits Tax in Hong Kong applies to all profits earned from business activities in the city. Companies need to file a Profit Tax Return annually to report their taxable profits. The standard corporate tax rate is 16.5%, but Hong Kong also offers a two-tiered system: 8.25% on the first HK$2 million of assessable profits and 16.5% on any profits exceeding that amount. However, if two or more connected entities exist, only one of them can elect to benefit from the two-tiered rates. Only profits sourced in Hong Kong are subject to tax.
Profits | Tax rate |
|---|---|
| Tax rate for incorporated businesses | 8.25% on the first HKD $2 million 16.5% for profits over HKD $2 million |
| Tax rate for unincorporated businesses (e.g. partnerships and sole proprietorships) | 7.5% on the first HKD $2 million 15% for profits over HKD $2 million |
| Tax rate on shareholder dividends | 8.25% on the first HKD $2 million 16.5% for profits over HKD $2 million |
| Tax rate on capital gains | 8.25% on the first HKD $2 million 16.5% for profits over HKD $2 million |
| Tax rate on foreign-sourced income | 8.25% on the first HKD $2 million 16.5% for profits over HKD $2 million |
Interest, dividend, IP income, and disposal gain may be exempted if a company meets certain criteria under the FSIE regime.
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When Is the Tax Return Deadline?
As mentioned, IRD will issue the profits tax return to active corporations and partnership businesses at the start of April every year. For companies with different year-end dates, the deadline for filing profits tax returns will be different.
However, the tax year calendar is as follows— why not save yourself some hassle and download the key tax dates straight to your calendar?
Accounting date | Standard deadline | Extended deadline |
|---|---|---|
| 1 April - 30 November (N code) | 2 May of next year | No extension |
| (Download for Google / Outlook) | ||
| 1 - 31 December (D code) | 15 August of next year | No extension |
| (Download for Google / Outlook) | ||
| 1 January - 31 March (M code) | 15 November of the same year | 31 January of next year for companies with statutory loss * |
| (Download for Google / Outlook) | (Download for Google / Outlook) |
*Extension application has to be submitted on or before 31 October.
What | When |
|---|---|
| Annual General Meeting (AGM) | Holding an AGM within 18 months from the date of incorporation is compulsory. Subsequently, it has to be held within 9 months after the end of its accounting reference period. |
| Annual Return (AR) | Due every calendar year (within 42 days of your company’s initial incorporation, except for the first year). |
What Tax Forms Are Required?
Depending on whether your business is a partnership business, corporation, or a non-resident person, you are required to file the following forms for your profits tax liability:
- For persons other than corporations: Form BIR52
- For corporations: Form BIR51
- For non-resident persons: Form BIR54
Additionally, IRD has introduced 18 supplementary forms to Profits Tax Return (BIRS1 to BIRS18) for taxpayers to report information on tax incentives and preferential regimes. The supplementary forms are part of the profit tax return and should be filed together. You can download the applicable supplementary forms, fill the form digitally, and submit the signed form together with your tax return.
Find out more about the profits tax return here.
What Tax Incentives Are Available?
Foreign Investment Incentives
Hong Kong does not offer any specific incentives for foreign investment, but offshore funds may be exempted from profits tax depending on their circumstances.
Foreign Tax Credits
In the event that foreign taxes are paid by a Hong Kong tax resident on derived income from a territory that has entered a Comprehensive Double Taxation Agreement (CDTA) with Hong Kong, and that income is subject to tax in Hong Kong, foreign tax credits are available. Before making a tax credit claim, taxpayers have to adopt all reasonable steps to minimise the payable foreign tax.
Stay compliant and avoid penalties with our hassle-free annual return filing service. Osome handles the paperwork, deadlines, and submissions to ensure your Hong Kong company stays in good standing — so you can focus on growing your business.
Do I Get Relief From Double Taxation in Hong Kong?
For the uninitiated, double taxation is also known as source-residence conflict. It occurs when two countries impose a tax on the same income – and in this context, it refers to a business. This means that the company’s income is being taxed twice, with the first source from the country where income is generated, and the second being the country of residence where payment is made. The second-mentioned is typically the home country, or where the business is from.
Through domestic tax laws or tax treaties with other countries to avoid double taxation, countries can offer different tax relief types.
Since Hong Kong adheres to the territoriality basis of taxation, this means that only earnings or sourced income in Hong Kong are accountable for taxes. This means that if your earnings are attained from a jurisdiction outside of Hong Kong, it is not subject to taxation in Hong Kong. Additionally, if you pay foreign tax on an income, which is also subject to tax in Hong Kong – which may entitle you to a tax credit to offset the tax obligation in HK if the jurisdiction has entered a Double Tax Treaty with Hong Kong.
To reduce tax rates and provide further tax reliefs, Hong Kong has a network of over 35 tax treaties with different jurisdictions.
How Do I File a Corporate Tax Return?
You need to file your Profits Tax Return by yourself. To file corporate tax in Hong Kong, simply follow these steps:
- Login to your eTax account
- Click on "Submission of Profits Tax Return" on the menu bar, and select "Continue as Taxpayer”
- Follow the instructions provided by IRD, and begin your filing process.
What Is the Penalty for Late Tax Filing?
Non-compliance is a serious issue. If you do not file your tax returns by the deadline or extended due dates, IRD will issue estimated assessments and start penalty proceedings according to Section 80(2) or 82A.
If you are found in violation, you'll be fined, and there's no maximum penalty. Additionally, an additional tax within three times the amount of owed tax will also be imposed.
Managing Your Small Business’s Taxes
Filing your taxes does not have to be taxing. Stay on top of things by preparing ahead, and bear in mind tips for a better tax filing and planning strategy.
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