Profits Tax Return Filing in Hong Kong: A Beginner’s Guide

Filing a Profits Tax Return (PTR) is one of the key obligations for any Hong Kong company, whether you're a startup, SME, or holding company. But between IRD deadlines, audit requirements, and form types, it’s easy to get overwhelmed.

This guide breaks down exactly what you need to know: who needs to file, when it's due, what documents are required, and how to avoid common mistakes. Whether you're filing for the first time or need a quick refresher, you'll find practical steps and tips to stay compliant.

A Profits Tax Return (PTR) is a formal tax document issued by Hong Kong’s Inland Revenue Department (IRD) to report a company’s income, expenses, and taxable profits for a specific year of assessment. It serves as the basis for determining how much profit tax your business must pay.

All entities carrying on a trade, profession, or business in Hong Kong are required to file a PTR. This includes:

• Private limited companies
• Partnerships
• Sole proprietors (if registered with the IRD)

Even if your company made no profit or remained inactive, you are still required to file a return, unless officially exempted by the IRD.

Given the name, some entrepreneurs confuse the Profits Tax Return with the Annual Return, but these are two completely different obligations in Hong Kong.

The Profits Tax Return (PTR) is filed with the Inland Revenue Department and reports your company’s income, expenses, and assessable profits for tax purposes.

The Annual Return (NAR1), on the other hand, is filed with the Companies Registry and updates your company’s basic information, such as directors, shareholders, and registered office address.

Both filings are mandatory, but they serve different purposes and are submitted using different forms, deadlines, and channels. 

The timing of your Profits Tax Return (PTR) filing in Hong Kong depends on two main factors: whether it’s your first return or a regular annual return, and your company’s accounting year-end. These details are outlined each year in the IRD’s circular letter issued at the start of the tax filing season.

For newly incorporated companies, the IRD typically issues the first Profits Tax Return about 18 months after the date of incorporation. Once received, you must file the PTR form along with any required supplementary forms within 1 month of the issue date.

For businesses that have already commenced operations, the IRD issues Profits Tax Returns each year, usually on the first working day of April. Like the first filing, the standard filing deadline is 1 month from the date of issue. 

However, if your company has a registered tax representative, you may qualify for extended deadlines under the IRD’s Block Extension Scheme, which will extend the due date following your company’s accounting period:

Note that the examples above apply to the 2024/25 Profits Tax Return filing cycle.

While it’s possible to file a Profits Tax Return yourself, most companies in Hong Kong choose to work with a Certified Public Accountant (CPA), tax representative, or a trusted accounting service provider like Statrys. This is especially helpful when it comes to preparing audited financial statements, tracking deadlines, and applying for filing extensions. 

Working with a professional ensures:

• Accurate completion of the PTR and supplementary forms
• Timely submission based on your accounting year-end
• Proper documentation if claiming tax exemptions (e.g. offshore profits)

The filing of Profits Tax Returns in Hong Kong involves several key steps to ensure your submission is complete, accurate, and fully compliant with IRD requirements. Here’s what to prepare before filing.

The first step is to identify which PTR form applies to your business.

You will receive the appropriate Profits Tax Return (PTR) form from the IRD, which is automatically assigned based on your business structure. Each form includes specific filing instructions and may require different supporting documents depending on the nature and scale of your business activities.

There are three main types of PTR forms:

• BIR51 – For Corporations

Issued to limited companies incorporated in or outside Hong Kong that are carrying on business in Hong Kong. This is the most commonly issued form and requires audited financial statements, a tax computation, and any relevant supplementary forms.

• BIR52 – For Partnerships

Designed for businesses registered as partnerships. In addition to reporting profits, this form requires details of all partners and their respective profit-sharing ratios. Audited accounts are not mandatory but accurate financial records must be submitted.

• BIR54 – For Sole Proprietors

Used by individual taxpayers operating a sole proprietorship. This form is the simplest of the three and does not require audited financial statements. However, a clear and complete breakdown of income and expenses for the relevant year must still be provided.

Most Hong Kong companies are required to submit audited financial statements along with their PTR. These should include the balance sheet, profit and loss account, and an auditor’s report signed by a Certified Public Accountant (CPA) in Hong Kong. Even if your company had little or no activity during the year, audited accounts are still required unless you’ve received an exemption from the IRD.

You’ll also need to include a tax computation showing how your assessable profits were calculated. This typically includes supporting schedules for depreciation allowances, non-deductible expenses, and any adjustments made under the Inland Revenue Ordinance. Accurate calculations reduce the risk of underpayment or disputes during assessment.

In addition to the main Profits Tax Return form, some businesses are required to complete one or more supplementary forms depending on the nature of their income. 

For example, businesses involved in foreign-sourced income, trading, service income, property rental, or aircraft leasing may need to submit specific supplementary forms that correspond to these income types. The goal is to give the IRD a clearer picture of how your business operates and what sources of income are involved.

These forms must be submitted together with the main PTR and should be completed carefully to avoid errors or delays in processing.

Depending on your situation, the IRD may also request additional documents and information such as:

• Management accounts, especially for new businesses
• Bank statements, contracts, or invoices for offshore profits tax exemption claims
• Group structure charts or transfer pricing documentation for multinational groups

Before finalising your Profits Tax Return, it’s essential to understand which expenses are allowable under Hong Kong’s tax laws for the relevant fiscal year. Applying the correct treatment ensures accurate tax filing and helps avoid penalties or queries from the IRD.

In this section, we’ll walk through the 3 key steps involved in the filing of Profits Tax Returns in Hong Kong. The process may vary slightly depending on your business structure, whether you’re a corporation, partnership business, or sole proprietor, and whether you choose to file manually or through the IRD’s eTAX portal.

You will receive the Profits Tax Return (PTR) from the IRD based on your business registration type and tax filing status. 

If your business is active but you haven’t received a PTR, it is your responsibility to contact the IRD and request one. Failing to do so does not exempt you from the obligation to file.

Before filing, make sure all supporting documents are ready and accurate. This includes audited financial statements, tax computation, supplementary forms, and any other required records such as bank statements or management accounts. Double-check that your financial year-end aligns with the current year of assessment to avoid discrepancies.

You can submit your Profits Tax Return (PTR) electronically via the eTAX system. This is an e-filing system that allows you to file the PTR, upload supplementary forms, and attach all required supporting documents online 24/7. 

Files must be submitted in the correct format:

• Supplementary forms: XML
• Financial statements and tax computations: iXBRL (PDF accepted only in certain cases)

The return must be signed through a personal eTAX account by an authorised person, such as a director, partner, or principal officer. Alternatively, a registered filing service provider can submit the return on your behalf using a signed IR1476 authorisation form.

If this is your first time filing a Profits Tax Return in Hong Kong, here are a few key points to keep in mind:

• Understand how tax is calculated: Profits tax is based on your net assessable profits for the basis period. This means total revenue minus allowable business expenses.
• Don’t forget provisional tax: After your first assessment, the IRD will issue a provisional tax demand for the following year, based on your reported profits.
• Keep accurate records: Good bookkeeping is essential for preparing your PTR correctly and on time. If you're unsure, consider using a professional bookkeeping service.
• Submit all required documents: This includes audited financial statements, tax computation, and any relevant supplementary forms.

At Statrys, we don’t just offer multi-currency business accounts; we also support entrepreneurs and SMEs with the accounting and compliance services needed to stay on top of their tax obligations in Hong Kong.

Whether you’re filing for the first time or need support managing multiple deadlines, we’re here to make the process easier, so you can focus on growing your business.