Related Articles:

【Late Tax Filing】What Happens If You Miss the Tax Deadline? How to Rectify It?

Why Does the Tax Department Conduct Tax Investigations?

1. Tax Preparation Stage: Be Prepared for Efficiency

Confirm Fiscal Year (Year of Assessment)

The fiscal year-end date for Hong Kong companies is generally December 31 or March 31 (same as the Hong Kong government's fiscal year).

2024/25 Tax Year: April 1, 2024, to March 31, 2025.

For more information on fiscal year-end dates, refer to the following article: Fiscal Year-End: How Should a Company Choose an Appropriate Fiscal Year-End Date?

Prepare Financial Statements

Financial statements summarize the financial year of an enterprise and must accurately reflect financial performance, position, and cash flows according to Hong Kong accounting standards. Required information includes:

• Balance Sheet
• Income Statement
• Statement of Changes in Equity

2. Tax Filing Steps: From Receiving Forms to Submission

Profits Tax Return (BIR51)

The Hong Kong Inland Revenue Department typically sends out the Profits Tax Return (BIR51) to companies on the first working day after April 1 each year. Upon receipt, you should immediately check:

• Verify if the company information is correct
• Confirm the tax filing deadline

How to declare if the company is at a loss? Refer to the following article: How to Report Losses for Hong Kong Company? Can Losses Reduce Taxes?

Company Tax Filing Process:

1. After receiving the tax return, submit the financial statements to a practicing accountant for auditing.

2. Fill out the tax return based on the audit report.

3. Submit the completed tax return and profits tax computation to the Inland Revenue Department.

4. Wait for the tax assessment and receive the tax payment notice.

5. Verify the tax amount and complete the payment before the deadline.

Extension Application Tips

If a company appoints a tax representative, the tax filing deadline will be automatically extended as follows:

• Code N (April 1 to November 30): No extension
• Code D (December 1 to December 31): Extension to August 15
• Code M (January 1 to March 31): Extension to November 15
• Loss-making companies: Extension to January 31 of the following year

eFor tax filing schedules, please refer to the following articles: Complete guide to first time tax filing for novice companies! Inventory of FAQ about Tax Returns

3. Tax-Saving Strategies: Legal Ways to Reduce Taxes

According to the Inland Revenue Ordinance (Cap. 112), deductible expenses must be "necessary expenses incurred for the purpose of producing assessable profits." Some deductible items include:

Operational and Business-Related Expenses:

• Cost of Goods Sold: Raw materials and costs required for producing or selling goods.
• Rental Expenses: Rent for offices, shops, and warehouses.
• Utilities and Communication Expenses: Including water, electricity, gas, telephone, and internet fees.

Human Resources Expenses:

• Employee Salaries and Benefits: Salaries, allowances, bonuses, MPF contributions.
• Training and Education Expenses: Costs for employees to attend courses or workshops.

Business Development and Maintenance Expenses:

• Entertainment and Socializing Expenses: Including business-related meals and meeting expenses.
• Advertising and Marketing Expenses: Covering promotional activities in local and overseas markets.
• Trademark and Patent Registration Fees: Including design, patent, trademark, and copyright registration fees.

4. Conclusion

Plan ahead to save taxes easily. Company tax filing is not just about "submitting forms"; it is an essential part of financial management. By preparing financial statements in advance, understanding the latest tax regulations, and making full use of tax benefits, you can effectively reduce the tax burden and save significant amounts.

OneStart Business Centre offers a one-stop "Accounting • Auditing • Tax Filing" service. Our professional accounting team has many years of experience and is trusted by clients, ensuring a smooth and efficient accounting, auditing, and tax filing experience. We can also act as tax representatives and provide professional advice. For more details, call 3575 6888 or contact OneStart Business Consultant via WhatsApp.

Click here to contact us on WhatsApp:

Know More About Our Services: