Hong Kong taxes profits on a territorial basis: only profits arising in or derived from Hong Kong are chargeable. Rates are low, and a two-tiered regime taxes a corporation's first HK$2 million of assessable profits at 8.25% and the balance at 16.5%. For unincorporated businesses the tiers are 7.5% and 15%.
The return itself is short. What takes work is the tax computation behind it — adjusting the audited profit for non-deductible items, claiming depreciation allowances correctly, and being ready to explain any offshore or unusual position.
On this page
- What is included
- Rates and thresholds
- BIR51, BIR52 and BIR60
- Deadlines and block extension
- iXBRL electronic filing
- Late filing penalties
- Fees
- Common questions
What is included
- Preparation and filing of BIR51 (corporations) or BIR52 (partnerships)
- Tax computation, including adjustments and depreciation allowances
- Attachment of the audited financial statements and auditor's report
- iXBRL financial statements where electronic submission is required
- Block extension application through the tax representative platform — free of charge
- Handling IRD enquiries and assessment queries
- Provisional tax review and holdover applications where justified
Rates and thresholds
| Taxpayer | First HK$2,000,000 | Remainder |
|---|---|---|
| Corporation | 8.25% | 16.5% |
| Unincorporated business | 7.5% | 15% |
Only one entity within a group of connected entities may elect the two-tiered rates in a year of assessment. Try the numbers in our profits tax calculator.
BIR51, BIR52 and BIR60
- BIR51 — private and public companies
- BIR52 — partnerships and other bodies of persons
- BIR60 — individuals, including sole proprietors reporting business profits
Every profits tax return must be accompanied by audited financial statements and a tax computation. Filing detail is in our BIR51 / BIR52 walkthrough.
Deadlines and block extension
Returns are normally issued in the first week of April and due within one month. Where a tax representative is appointed, a block extension applies according to the accounting date:
| Code | Financial year ends | Extended due date |
|---|---|---|
| N | 1 April – 30 November | Early May (electronic filing early June) |
| D | 1 – 31 December | Mid August |
| M | 1 January – 31 March | Mid November |
| M (loss cases) | 1 January – 31 March | Following February |
A first return is generally not extendable; extensions apply from the second year onwards. Full dates for the year are in the 2026 Hong Kong tax calendar.
iXBRL electronic filing
From 1 April 2026 tax representatives must submit block extension applications electronically through the Tax Representative Portal. Multinational enterprise group entities must file profits tax returns electronically from the 2025/26 year of assessment, with financial statements tagged in iXBRL. We handle generation, validation and submission — see iXBRL filing and block extensions.
Late filing penalties
- Section 80(2) IRO — fine up to HK$10,000 plus treble the tax undercharged
- Section 82A IRO — additional tax up to treble the tax undercharged in lieu of prosecution
- Late payment — 5% surcharge, plus a further 10% if still unpaid after six months
Fees
| Service | Fee |
|---|---|
| Profits tax return (BIR51 / BIR52) with computation | HK$270 |
| Block extension application | Free |
| Employer's return (BIR56A) and IR56B forms | From HK$300 |
| Offshore claim submission | See offshore income exemption |
Common questions
My company made a loss. Do I still file?
Yes. Losses are carried forward indefinitely and set against future profits, but only if they are properly reported.
Can I file without an audit?
No. A Hong Kong limited company must attach audited financial statements. Arrange the audit first.
What if my profits are offshore?
An offshore claim must be made in the return and substantiated with operational evidence. See offshore income exemption.
Call 3687-1127 or send your year end and turnover for a filing quote.