Unlimited Company Filing Tax Office

Corporate tax returns, Incorporation of unlimited companies, 未分類
  1. Opening in the first year
    • Your business commenced in November 2024 for the year of assessment 2024/25 (1 April 2024 – 31 March 2025).
    • If the first year-end date falls after 31 March 2025 (e.g. 31 December 2025), there is normally no tax for 2024/25 (as the depreciation allowance may offset the profits).
  2. The Inland Revenue Department issues tax returns
    • If you receive BIR60 tax return every year, report the profit/loss of your business directly in the return.
    • If you do not receive your tax return every year: The Inland Revenue Department (IRD) may issue the first BIR60 within 18 months after you commence business (around May 2026).
  3. Cases that require proactive notification
    • If there are assessable profits for 2024/25 (after deducting depreciation allowances), the Inland Revenue Department (IRD) must notify the Inland Revenue Department in writing before 31 July 2025 for the issuance of a tax return.
    • Failure to notify on time may result in fines.

Filing steps

  1. Preparation of accounts
    • Record all business income, expenses, and draw up a year-end date for the first year (we are advised to do so).
    • Maintain receipts and financial records for at least 7 years.
  2. Complete BIR60 tax return
    • Fill in the profit/loss in the sole proprietorship section (calculate the assessable profits according to the IRD guidelines).
    • Attach financial statements such as profit and loss statement, balance sheet, etc. (as required by the tax office).
  3. Submission Deadline
    • Once the tax return is received, it needs to be filed within 1 month (e-filing can be extended to 3 months).

Precautions

  • High tax allowance in the first year: New business may not need to pay tax in the first year due to tax exemptions such as equipment depreciation, but it still needs to be declared.
  • Provisional tax payment mechanism: If there is tax payable, the tax bureau will collect the provisional tax for the next year in advance based on the profit of the current year.
  • Late Penalty: Failure to file or notify on time is subject to a penalty of up to $10,000 plus a penalty of 3 times the amount of tax owed.

Inland Revenue https://www.ird.gov.hk/chi/tax/ind_ctr.htm

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