Annual Accounts & Tax Compliance

Annual Accounts & Profits Tax Filing HK

Every HK company must file audited accounts and a profits tax return annually. Miss deadlines or understate deductions and you face penalties — or overpay unnecessarily.

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16.5% Standard profits tax rate
8.25% Two-tier rate (first HKD 2M)
1,200+ Returns filed annually

Annual Accounts & Tax Compliance

Every HK company must file audited accounts and a profits tax return annually. Miss deadlines or understate deductions and you face penalties — or overpay unnecessarily.

⚠️

⚠ Late Filing Attracts Automatic Penalties

IRD issues automatic penalties for late profits tax returns — starting at HKD 1,200 and escalating to court summons. A tax representative can extend deadlines through the Block Extension Scheme.

Common Challenges

Are you facing these tax issues?

Audit Requirement

All HK companies must have accounts audited by a Certified Public Accountant (practising) before submitting the profits tax return.

⚠ Risk: Unaudited accounts → IRD rejection + penalties

Filing Deadlines

Profits tax returns are due within 1 month of issue (or up to April under Block Extension). Missing deadlines = automatic penalties.

⚠ Risk: Late filing → HKD 1,200–10,000 penalty + interest

Missed Deductions

Many companies miss legitimate deductions under IRO s.16 — bad debts, depreciation, R&D, charitable donations (s.16C), and more.

⚠ Risk: Missed deductions → overpaying tax for years

Tax Computation Errors

Profits tax computation requires adjusting accounting profit for disallowable items — capital expenditure, private use, entertainment limits.

⚠ Risk: Errors → IRD queries, back-assessments, interest
Who It's For

Who This Service Is For

Active trading companies

Companies generating revenue in HK requiring annual audit and tax return.

Dormant companies

Companies with no activity still need to file "nil" returns to stay compliant.

SMEs without in-house accountants

Small businesses outsourcing all accounting and compliance functions.

Companies under IRD investigation

Businesses needing CPA representation to handle IRD queries or back-assessments.

Our Services

What We Cover

Financial Statements Preparation

Prepare full HKFRS-compliant financial statements from your accounting records.

Balance sheet, P&L, cash flow, notes

Statutory Audit

Independent CPA audit of financial statements as required by the Companies Ordinance and IRD.

Audit opinion + management letter

Profits Tax Return (BIR51)

Prepare and file the profits tax return with optimised tax computation and all legitimate deductions.

Including supplementary forms (S1–S4)

IRD Query Handling

Represent you in correspondence with IRD, including field audits and back-assessment negotiations.

CPA-signed representations
How It Works

Simple, efficient, professional

1

Bookkeeping Review

We review your accounting records and identify any gaps or errors before audit.

1-3 days
2

Audit Fieldwork

Our CPA team performs the statutory audit and prepares financial statements.

1-2 weeks
3

Tax Computation

Prepare profits tax computation with all deductions, allowances, and adjustments.

2-3 days
4

Filing & Confirmation

Submit BIR51 and receive IRD acknowledgement. Advise on tax payment timing.

1 day
Ready to Get Started? No obligation — cancel anytime
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Client Success Stories

Real results for real clients

Case Study

Import/export SME — 3 years of unreconciled accounts

HKD 320,000 Saved
  • 3 years of unfiled returns regularised
  • Back-assessment negotiated down by 40%
  • HKD 180K in missed deductions identified
  • Penalty waiver obtained from IRD
"They sorted out three years of chaos in two months and saved us more than we expected."
C
Verified Client Case Study
Case Study

Professional services firm — deduction optimisation

HKD 95,000 Saved
  • Annual profits HKD 2.8M
  • Home office, equipment and R&D deductions added
  • Charitable donation timing optimised
  • MPF employer contributions fully claimed
"First time we felt our accountant was actually fighting for us."
C
Verified Client Case Study
★★★★★ 2,400+ clients trust our team
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Free Expert Consultation

Speak with a senior tax specialist today

  • Free 30-min initial consultation
  • Senior CPA assigned to your case
  • No obligation — cancel anytime
HKICPA Registered 24-Hour Response No Obligation
Why Choose Us

Why Choose TAX.hk

Deep HK Tax Expertise

Our CPAs have 15+ years of HK tax experience and keep current with every IRD update.

Transparent Fixed Fees

No hourly billing surprises. Know your cost upfront before we start.

24-Hour Response

We respond to all enquiries within one business day. Urgent cases within 4 hours.

Strict Confidentiality

All client information is held under strict professional duty of confidentiality.

FAQs

Frequently Asked Questions

Quick answers to your questions

IRD issues profits tax returns to companies on the first working day of April each year. For businesses with a 31 March year-end, the return is typically due within 1 month. Tax representatives on the Block Extension Scheme get extended deadlines — up to November for December year-ends.
The Block Extension Scheme allows tax representatives (CPAs) to obtain automatic extended deadlines for filing profits tax returns on behalf of their clients. This is why having a CPA as your tax representative can give you up to 6 extra months.
Section 16 allows deductions for expenses incurred in the production of chargeable profits: staff costs, rent, utilities, professional fees, bad debts (s.16(1)(d)), R&D (s.16B), donations to approved charities (up to 35% of profits under s.16C), and capital allowances on plant/machinery.
Capital expenditure, domestic/private expenses, losses not connected with the trade, income taxes paid in HK or overseas (unless credit claimed), and entertainment expenses (partially restricted) are the main disallowable items per IRO s.17.
Yes. All HK incorporated companies must have their accounts audited regardless of activity level. Dormant companies should file a nil profits tax return with a dormancy certificate.
IRD can impose a penalty of HKD 1,200 for first-time late filing, escalating with repeat offences. Serious or deliberate non-compliance can result in court summons and fines up to HKD 10,000 plus treble the tax undercharged.

Ready to Get Started?

Book a free consultation with a senior HK tax specialist today.

This page provides general information only. For advice specific to your situation, please consult a qualified Hong Kong tax professional.