Wind Up Your HK Business Without Leaving Tax Liabilities Behind
The IRD will not close the door until every tax obligation is settled. From filing the final BIR51 to obtaining your tax clearance certificate, our qualified tax consultants manage the entire closure process so you recover deductions you are owed and avoid costly penalties.
Business Closure & Liquidation Tax Specialist
The IRD will not close the door until every tax obligation is settled. From filing the final BIR51 to obtaining your tax clearance certificate, our qualified tax consultants manage the entire closure process so you recover deductions you are owed and avoid costly penalties.
⚠ Do Not Deregister Before Obtaining IRD Tax Clearance
Many directors attempt to deregister via the Companies Registry (Form NDR1) without first obtaining the IRD's No Objection Notice. This leaves you personally exposed to back-taxes, surcharges, and even prosecution under s.51 IRO. The IRD can reopen companies for assessment up to 6 years after cessation. Our process ensures full clearance before any CR submission.
Are you facing these tax issues?
Missing the Final BIR51 Return
All companies must file a final profits tax return covering the period up to cessation. Failure results in estimated assessments at maximum rate plus late filing surcharges of up to 10%.
Unclaimed Cessation-Year Deductions
Redundancy payments, lease termination premiums, stock write-offs, and WIP write-downs are deductible under s.16 IRO. Without a specialist, these are routinely missed, inflating the final tax bill.
Staff Termination MPF & Tax Errors
Employers must make final MPF contributions and obtain employee salaries tax clearance (IR56F/IR56G) before releasing final pay. Errors in sequencing attract penalties from both MPFA and IRD.
Unrecovered Provisional Tax Overpayments
Many closing businesses have overpaid provisional profits tax. Without a formal holdover application (s.63A IRO) or cessation notification, the IRD retains the overpayment indefinitely.
Who This Service Is For
Closing a restaurant, retail store, or trading business; needs final tax return, staff clearance, and deregistration.
Winding up a consulting, legal, or accounting practice with WIP, accrued fees, and retainers to resolve.
Unwinding a group structure: dividend flows, intercompany loan waivers, and cross-entity loss utilisation.
Companies inactive for years but with unresolved IRD assessments or outstanding returns preventing deregistration.
Overseas parent closing its HK entity: managing withholding tax on final dividends and transfer pricing adjustments.
What We Cover
Final BIR51 Profits Tax Return
Preparation and filing of the final profits tax return covering the period to cessation, including balancing charge/allowance calculations on all plant and machinery.
IRD Tax Clearance (No Objection Notice)
Full liaison with the IRD to obtain the No Objection Notice required before Companies Registry deregistration. We manage all correspondence and queries.
Cessation Deduction Claims
Identification and substantiation of all cessation-year deductible expenses to maximise refunds and minimise the final tax bill.
Employee IR56 & MPF Clearance
IR56F/IR56G preparation, final BIR54 employer return, and final MPF contribution calculation and remittance coordination.
Provisional Tax Holdover & Refund Recovery
Formal holdover applications under s.63A IRO where cessation results in reduced income, plus full recovery of any overpayment.
Simple, efficient, professional
Diagnostic Review & Exposure Mapping
Review all outstanding assessments, filed returns, unpaid provisional tax, and employee records. Produce closure liability schedule with identifiable refunds.
Week 1–2IRD Cessation Notification & Holdover
Formal cessation notification to IRD (required within 1 month under s.51) and simultaneous provisional tax holdover application under s.63A.
Week 2–4Final Returns & Cessation Deduction Claims
Prepare final BIR51 with full cessation deduction schedule, final BIR54 employer return, and all employee IR56F/G notifications.
Week 3–8IRD Review, Settlement & Deregistration
Manage all IRD correspondence, negotiate settlements where needed, obtain No Objection Notice, and coordinate Companies Registry deregistration filing.
Week 8–16Real results for real clients
F&B Group — 3 Restaurant Closures
- Three entities with overpaid provisional tax based on prior-year assessments despite declining revenues
- Simultaneous holdover applications filed for all three under s.63A
- Full staff IR56F clearance achieved in 18 working days
VC-Backed Tech Startup — IP Transfer Dispute
- IP transferred to overseas parent at book value; IRD assessed HK.4M on deemed below-market transfer
- Engaged specialist IP valuation firm demonstrating significant technical debt and no standalone value
- Settlement agreed at HK0K — 77% reduction from IRD original assessment
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
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.
Frequently Asked Questions
Quick answers to your questions
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.