Many company owners may have tried to file tax returns in their personal capacity, but they may not know the details of Hong Kong companies’ tax returns. The following article deconstructs the basic concepts of corporate tax filing from the perspective of a limited company and an unlimited company and shows the company’s tax filing time.
When does a limited company need to file a tax return?
Limited company tax timetable? There may be slight differences every year, but the Inland Revenue Department will generally issue a “Profits Tax Return” to all limited companies in Hong Kong on the first working day of April.
When a limited company receives the “Profits Tax Return”, it must complete it within one month of the date of issue of the return (the deadline for submission is listed on page 1 of the tax return) and return it to the Inland Revenue Department for processing of tax assessment.
Keep in mind that if the company was at a loss for the previous year of assessment, the company may not necessarily receive a Profits Tax Return from the Inland Revenue Department, it may be issued at any time in the future. However, if the company has assessable profits in that year, it should take the initiative to declare that it has not received the relevant tax returns and request the tax bureau to follow up.
If you intend to file an extension for the company’s profits tax return, you can extend the period to the following dates based on the financial year end:
(Financial year-end) (The deadline can be expired)
N code – other than D and M code cannot be extended
D code December 31 August 15
M code March 31 November 15
M code (loss cases) March 31 January 31
When does an unlimited company need to file a tax return?
In the case of a sole proprietorship, the Inland Revenue Department will generally require the proprietor to declare the relevant assessable tax on the “Individual Tax Return” issued in May, but if the proprietor still receives the profits tax return of the sole proprietorship, you still need Complete and submit to the Inland Revenue Department within one month of the date of issue on the tax return.
Unlike sole proprietorships, partnership companies will not fill in the assessable tax on each partner’s “individual tax return” when filing tax returns. The Inland Revenue Department will then issue a Profits Tax Return to the partnership company for completion.
However, partners can still apply for personal income tax for the partnership, and each partner needs to apply on the tax return unanimously.
By the way, whether it is a sole proprietorship company or a partnership company, if its income exceeds HK$2 million in the year of assessment, it needs to be submitted to the Inland Revenue Department together with the balance sheet and income statement prepared by the auditor when filing tax returns.
Company filing taxes for the first time.
If your company is filing a tax return for the first time, whether it is a limited company or an unlimited company, the Inland Revenue Department will generally issue the first profits tax return from the 18th month after the company is established.
Due to the relationship between newly established companies, the period for their first tax return is not one month but will be extended by 2 months compared with ordinary companies, that is to say, companies can submit their profits tax returns within three months. Tax returns will not be approved.
The above information is for reference only. If you have any questions about tax declaration and accounting, we welcome your inquiries.