Tax administration in Hong Kong is moving quickly towards a more digital, streamlined model. The Inland Revenue Department (IRD) is rolling out electronic filing (e-filing) of profits tax returns in phases, with mandatory adoption applying to specified taxpayer groups as the regime expands and with wider implementation targeted for around 2030.
Under Hong Kong’s mandatory e-filing regime, the first phase applies to certain entities that form part of multinational enterprise (MNE) groups for the Year of Assessment (YA) 2025/26 onwards.
The IRD has indicated that entities brought within the mandatory e-filing population should generally plan to continue filing electronically in subsequent years, subject to the authority’s rules and any future changes. In this article, we discuss:
- Who must e-file profits tax returns in Hong Kong?
- The benefits of e-filing for companies in Hong Kong
- How to e-file your profits tax return
- The deadline for profits tax return e-filing
- Our end-to-end e-filing support
- Frequently asked questions
Who must e-file profits tax returns in Hong Kong?
Under the IRD’s first phase of mandatory e-filing, certain entities within in-scope multinational enterprise (MNE) groups are required to file profits tax returns electronically for YA 2025/26. Your obligation to e-file depends on whether you fall within the IRD’s specified first-phase mandatory e-filing group and any applicable administrative requirements, taking into account the global anti-base erosion (GloBE) rules and Hong Kong minimum top-up tax (HKMTT) regime.
A Part 4AA entity generally refers to a Hong Kong constituent entity of the group, certain Hong Kong joint ventures or joint venture subsidiaries, or a Part 4AA stateless entity (as defined under the Inland Revenue Ordinance and related legislation and guidance).
If your entity meets this definition and your MNE group is considered in-scope for the relevant fiscal year, you may fall within the first phase of the mandatory e-filing.
To support the transition, additional time to file may be available in certain cases for e-filing, subject to the IRD’s prevailing arrangements (including, where applicable, the tax representative block extension scheme) and any application/eligibility requirements.
To determine whether your business is within scope, please contact our team. We can assess your position, help you prepare the required information and guide you through e-filing from end to end.
Benefits of e-filing for companies in Hong Kong
If your company is not yet required to e-file, you may still file electronically on a voluntary basis. E-filing can simplify internal administration in a number of ways, including reducing manual errors and giving you clearer, real-time visibility over the status of your returns.
If you work with internal finance teams, external accountants or corporate service providers, the online process can also support smoother collaboration. It provides a more centralised way to access records and manage tax documents over time.
How to e-file your profits tax return
There are two ways to e-file your Hong Kong profits tax return: full e-filing and semi e-filing.
Full e-filing
For full e-filing, you can complete the process online via the IRD’s Business Tax Portal (BTP), starting with uploading the completed supplementary forms in Extensible Markup Language (XML) format.
Depending on your circumstances and the IRD’s requirements, you may also need to submit supporting documents. This includes financial statements (typically audited where applicable), tax computations and supporting schedules in the prescribed electronic formats, such as the inline eXtensible Business Reporting Language (iXBRL) format where applicable.
You can then complete the profits tax return online (either BIR 51 for corporations or BIR 52 for persons other than corporations). For full e-filing, you will need to submit and sign electronically. If your submission is successful, you will receive a Transaction Reference Number.
Semi e-filing
If you prefer not to complete the final step online, semi e-filing offers a practical alternative in eligible cases. Under this approach, you can still complete the return and submit the required information through the BTP.
Instead of signing online, you can print the simplified return generated by the system, sign it manually and submit the signed copy to the IRD in paper form.
Deadline for profits tax return e-filing
In Hong Kong, the filing deadline for a profits tax return depends on when the IRD issues it. Profits tax returns are issued on the first working day of April each year and the filing deadline depends on the accounting date and whether the taxpayer qualifies for an extension under the IRD’s administrative practice.
Our end-to-end e-filing support
As Hong Kong continues to digitalise its tax administration, our team is ready to support you in meeting the e-filing requirements and key deadlines with confidence. As a trusted corporate service provider, we work with start-ups, small and medium enterprises (SMEs), foreign-owned companies operating in Hong Kong, and multinational groups with Hong Kong subsidiaries or other local entities.
How do I appoint Hawksford as my service provider?
You may appoint us through your BTP account, provide written authorisation or sign the Confirmation for Engagement of Service Provider to Furnish Return (IR1476). Once this is done, we can prepare and submit your profits tax returns on your behalf through the IRD’s Tax Representative Portal (TRP). This may include preparing or converting supplementary information and supporting documents into the required electronic formats (for example, XML and iXBRL where applicable).
Where needed, we can consult with the IRD and support you with related matters such as business registration, certificates of resident status and other individual tax areas.
Beyond that, we can also help with block extension applications, changes of business address, access to business registration demand notes and certificates, as well as the purchase of tax reserve certificates. For more information on our tax services, get in touch using the form below.
Frequently asked questions
What is a profits tax return in Hong Kong?
A profits tax return is the document issued by the Inland Revenue Department (IRD) for reporting a business’s taxable position for a given year of assessment (YA). It requires you to provide details of your income, expenses and assessable profits. This is together with supporting materials such as financial statements, tax computations and any supplementary forms that may apply. Based on this information, the IRD determines whether tax is payable and, if so, how much.
It’s worth noting that as part of the Hong Kong Budget 2026-27, a one-off 100% reduction of profits tax has been proposed for YA 2025/26, with a cap of HK$3,000 (subject to final legislative and administrative implementation).
What is the difference between a profits tax return and an annual return?
A profits tax return and an annual return serve different purposes in Hong Kong. A profits tax return is submitted to the IRD so that your business income and taxable profits can be assessed for tax purposes. An annual return is filed with the Companies Registry and is used to confirm key corporate particulars such as your company’s officers, shareholders and registered office.
Is electronic filing of profits tax return mandatory in Hong Kong?
Electronic filing (e-filing) of profits tax returns is being introduced gradually in Hong Kong. Under the first phase, e-filing is mandatory for taxpayers that fall within the IRD’s specified first-phase mandatory e-filing population (which includes certain entities within in-scope multinational enterprise groups) for years of assessment beginning on or after 1 April 2025.
Over time, the IRD intends to expand the mandatory e-filing requirement to more taxpayers as part of its broader tax digitalisation initiative, with wider implementation targeted for around 2030. If your business is not yet covered, you may still choose to file electronically on a voluntary basis.
Can I still file manually?
Businesses that fall outside the mandatory e-filing regime may continue to complete and submit their returns in paper form. However, as Hong Kong moves towards a more digital tax administration framework, electronic submission is expected to become increasingly common. You may consider switching to e-filing ahead of future requirements.
Who can use the e-filing service?
The e-filing service may be used by taxpayers who intend to lodge their profits tax returns online through the IRD’s electronic platforms. You may manage the filing yourself through the Business Tax Portal (BTP) or authorise a service agent, such as Hawksford, to act for you through the Tax Representative Portal (TRP). These portals can be used to submit returns, upload supporting records and manage other tax-related matters digitally.
What is the BIR 51 profits tax return?
The BIR 51 is the profits tax return issued to corporations in Hong Kong. It is the standard form used by companies to report their taxable position for a particular YA. In most cases, it is filed together with the company’s financial statements (typically audited where applicable), tax computation and any supplementary information required by the IRD. The form provides the basis on which the IRD reviews the company’s tax position.
What expenses can and cannot be deducted in a profits tax return?
As a general rule, you may claim deductions for expenses incurred in producing your assessable profits, provided they are revenue in nature and sufficiently connected to the business. These may include items such as office rent, staff costs, professional charges and certain operating expenses.
Private expenses, non-business costs and capital items that do not qualify for specific allowances are usually not deductible. Whether a particular expense can be claimed will depend on the facts and the applicable tax rules.
What information does the BIR 51 form require?
The BIR 51 form requires you to provide key information about your company’s financial performance and business activities for the relevant YA. This typically includes details of your company’s turnover, operating expenses, profits or losses and any adjustments needed to arrive at assessable profits for tax purposes.
What should I do if my business changed structure during the year?
If your business underwent structural changes during the year, such as a change in ownership, incorporation status or business activities, it is important to reflect those changes accurately in your profits tax return. You may need to provide additional information or explanatory notes when submitting your return to ensure the IRD understands how the changes affect your tax position.
What are the penalties for late or incorrect filing of a profits tax return?
Late filing can lead to estimated assessments where the IRD determines the tax payable based on its own estimate rather than your actual figures. Financial penalties may also apply if the return is not submitted within the required timeframe or if incorrect or misleading information is provided. To avoid unnecessary risk and disruption, it is important to submit your profits tax return accurately and on time. If you would like support, please reach out to our team.
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