[2025 Latest] Hong Kong Company Tax Filing Guide: Limited Company & Unlimited Company Tax Filing Guide

Companies operating in Hong Kong, whether limited or unlimited, must comply with the regulations of the Inland Revenue Department and declare profits tax, employer tax and other related taxes on time. Many companies are not familiar with the tax declaration process and are worried that mistakes will lead to fines or affect the company's operations. Therefore, we have compiled a comprehensive and simple company tax declaration package to help companies clearly understand the declaration requirements, tax deduction items and common problems, ensure compliance and reasonably reduce the tax burden.

Overview of Hong Kong Company Tax Return Types

In Hong Kong, the main tax declarations that companies need to handle include the following:

All companies operating in Hong Kong (including limited companies and unlimited companies) are required to file profits tax returns with the Hong Kong Inland Revenue Department every year.

• Limited companies: need to submit BIR51 tax return and attach audited financial statements.

• Unlimited companies: need to submit BIR52 tax return, financial statements do not need to be audited, but complete accounting records must be prepared.

• Tax rate: 8.25% (SME concession) applies to the first HK$2 million of assessable profits, and 16.5% (standard profits tax rate) applies thereafter.

• Every April, employers need to submit BIR56A tax return and issue IR56B to employees to report salary, bonuses and benefits.

• If the company employs foreign or temporary employees, other corresponding forms (such as IR56E / IR56F) must be submitted.

• If the declaration is not made on time or the wrong information is submitted, the employer may face fines or legal liability.

• If a company holds a property and generates rental income, it must pay property tax at a rate of 15%.

• A company can declare necessary expenses, such as maintenance fees, management fees, etc., to reduce the amount of tax payable.

Tax time

There are strict time limits for corporate tax returns. If you submit your tax returns late, you may face fines or legal liability. The following are the main tax return timelines that Hong Kong companies need to pay attention to to ensure that the company can complete the return in time and avoid unnecessary risks.

Tax deductible expenses

A company can reduce its tax burden by reducing its assessable profits through the following expenses:

Employee salaries and benefits

• Employee salaries, bonuses, commissions

• Mandatory Provident Fund (MPF) contributions

• Employee medical insurance

Operating and administrative expenses

• Office rent and management fees

• Utilities, telephone and internet charges

• Insurance premiums

R&D and technology expenses

• Product development costs

• Software and IT system upgrade costs

• Patent or intellectual property purchase costs

Borrowing and financing costs

• Business loan interest

• Bank fees

Marketing and branding

• Social media advertising, Google ads

• Event planning and marketing

Commercial insurance

• Property insurance, employee insurance, liability insurance, etc.

Frequently Asked Questions about Hong Kong Company Tax Returns

The following are frequently asked questions about Hong Kong company tax returns to help you understand relevant tax matters

Q1: Is an audit report required?

According to the Companies Ordinance, all companies registered in Hong Kong (except dormant companies) are required to submit audited financial statements.

Q2: If the company has no operating income, does it still need to file taxes?

Even if there is no operating income, the company still needs to submit tax returns on time, otherwise it may face fines or other legal consequences.

Q3: Can I apply for an extension of tax filing?

Yes, if the company hires a professional accountant, it can apply for a 3-month extension of the filing deadline.

Q4: What are the consequences of not filing taxes on time?

Failure to file on time may result in fines, late payment fees, and even affect the company's credit. In serious cases, it may face legal liability.

Q5: Does the company need to pay taxes on overseas income?

Hong Kong adopts the principle of territorial source and only taxes income from Hong Kong. Therefore, the company's overseas income generally does not need to pay taxes in Hong Kong, but it needs to ensure that the income is indeed sourced from overseas.

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Corporate tax returns involve a variety of regulations and compliance requirements. Professional accounting and tax consultants can help companies ensure accurate tax returns and reduce potential risks.

If you need more information on Hong Kong corporate tax returns or professional consulting services, please contact us. We will wholeheartedly provide you with a one-stop corporate financial solution!

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