{"id":32,"date":"2026-09-17T08:10:35","date_gmt":"2026-09-17T08:10:35","guid":{"rendered":"https:\/\/vivosgroup.com\/hk\/services\/accounting-tax\/"},"modified":"2026-10-08T02:30:39","modified_gmt":"2026-10-08T02:30:39","slug":"accounting-tax","status":"publish","type":"page","link":"https:\/\/vivosgroup.com\/hk\/services\/accounting-tax\/","title":{"rendered":"Accounting, Audit and Profits Tax Services in Hong Kong"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull vv-section vv-section--grey vv-hero has-global-padding is-layout-constrained wp-container-core-group-is-layout-b7edd97f wp-block-group-is-layout-constrained\">\n<p class=\"vv-eyebrow wp-block-paragraph\">Hong Kong services<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">Accounting, Audit and Profits Tax Services in Hong Kong<\/h1>\n\n\n\n<p class=\"vv-answer wp-block-paragraph\">Hong Kong charges profits tax at 8.25% on the first HK$2 million of assessable profits and 16.5% above, has no VAT, GST or sales tax, and requires every company except a dormant one to file audited financial statements with its profits tax return. VIVOS Corporate Services (HK) Ltd. keeps the books to audit standard, coordinates the audit with an independent Hong Kong CPA practice and files the return, including offshore-profits claims where the facts support one.<\/p>\n\n\n\n<p class=\"vv-lede wp-block-paragraph\">Hong Kong requires audited financial statements in support of the profits tax return, so bookkeeping has to be prepared to audit standard from the start. We maintain the records, brief the auditor and manage the filing timetable.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-facts has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Profits tax rate<\/td><td>Two-tiered: 8.25% on the first HK$2m of assessable profits, 16.5% above<\/td><\/tr><tr><td>Consumption tax<\/td><td>None \u2014 Hong Kong has no VAT, GST or general sales tax<\/td><\/tr><tr><td>Audit requirement<\/td><td>Mandatory annual audit by an independent Hong Kong CPA practice; dormant companies are exempt<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">What&#8217;s included<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bookkeeping and management accounts prepared to audit standard<\/li>\n\n\n\n<li>Audit coordination with an independent Hong Kong CPA practice<\/li>\n\n\n\n<li>Profits tax computation and return filing<\/li>\n\n\n\n<li>Employer&#8217;s return and payroll administration<\/li>\n\n\n\n<li>Catch-up work where several years of audits have been missed<\/li>\n\n\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n\n<h2 class=\"wp-block-heading\">Hong Kong profits tax and audit at a glance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Hong Kong taxes profits arising in or derived from Hong Kong, for years of assessment ending 31 March. A company&#8217;s return must be supported by audited accounts unless the company is dormant.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Detail<\/th><\/tr><\/thead><tbody><tr><td>Year of assessment<\/td><td>1 April to 31 March, based on the financial year ending in that period<\/td><\/tr><tr><td>Rates, unincorporated businesses<\/td><td>7.5% on the first HK$2 million; 15% above<\/td><\/tr><tr><td>Connected entities<\/td><td>Only one entity per connected group can be nominated for the two-tiered rates each year<\/td><\/tr><tr><td>Capital gains<\/td><td>Profits from the sale of capital assets are outside profits tax<\/td><\/tr><tr><td>Dividends received<\/td><td>Excluded if paid by a corporation subject to Hong Kong profits tax<\/td><\/tr><tr><td>Foreign-sourced income (FSIE)<\/td><td>Since 1 January 2023, foreign interest, dividends, disposal gains and IP income of multinational group members can be taxable unless an exception applies<\/td><\/tr><tr><td>Global minimum tax<\/td><td>15% for groups with revenue of EUR 750 million or more, from fiscal years starting 1 January 2025<\/td><\/tr><tr><td>Tax treaties<\/td><td>Comprehensive agreements concluded with 60 jurisdictions, some not yet in force<\/td><\/tr><tr><td>Auditor<\/td><td>A certified public accountant (practising); the AFRC has issued practising certificates since 1 October 2022<\/td><\/tr><tr><td>Record keeping<\/td><td>At least 7 years after the transactions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Hong Kong profits tax rates and exemptions compared<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Hong Kong corporation normally pays 8.25% on the first HK$2 million of assessable profits and 16.5% above. A connected entity that is not nominated pays 16.5% throughout, while offshore profits and some concessionary regimes are taxed at 0% to 8.25%.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Tax position<\/th><th>Rate<\/th><th>Applies to<\/th><th>Key condition<\/th><\/tr><\/thead><tbody><tr><td>Two-tiered rates<\/td><td>8.25% on the first HK$2m; 16.5% above<\/td><td>Corporations; one nominated entity per connected group<\/td><td>Nominated in the profits tax return; irrevocable for that year<\/td><\/tr><tr><td>Standard rate only<\/td><td>16.5% on all assessable profits<\/td><td>Connected entities not nominated<\/td><td>Control means more than 50% of shares, votes, or capital or profits<\/td><\/tr><tr><td>Offshore profits<\/td><td>0%<\/td><td>Profits arising outside Hong Kong<\/td><td>Untaxed even if remitted, subject to FSIE; facts and records must support the claim<\/td><\/tr><tr><td>FSIE exception<\/td><td>0% on specified foreign-sourced income received in Hong Kong<\/td><td>Multinational group members with foreign interest, dividends, IP income or disposal gains<\/td><td>Economic substance; or at least 5% held for 12 months (dividends, equity gains); nexus approach (IP income)<\/td><\/tr><tr><td>Qualifying corporate treasury centre<\/td><td>50% of the normal rate (8.25%)<\/td><td>Qualifying profits<\/td><td>From 2016\/17<\/td><\/tr><tr><td>Eligible IP income (patent box)<\/td><td>5%<\/td><td>Concessionary portion of eligible IP income<\/td><td>Years of assessment from 1 April 2023<\/td><\/tr><tr><td>Family investment holding vehicle<\/td><td>0%<\/td><td>Qualifying and incidental transactions<\/td><td>Managed by an eligible single family office in Hong Kong; from 2022\/23<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">How the Hong Kong accounting and profits tax cycle works<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The cycle runs from bookkeeping to audit to the profits tax return (Form BIR51). For 2025\/26, returns were issued on 1 April 2026 and are due one month later unless a block extension applies.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Keep books from the first day of trading and retain records for at least 7 years.<\/li>\n\n<li>Close the year at the accounting date and prepare financial statements. Small private companies may use the reporting exemption but still need an audit.<\/li>\n\n<li>Have the statements audited by a practising CPA and approved by the directors.<\/li>\n\n<li>Prepare the tax computation, supporting any offshore or FSIE claim and confirming which connected entity takes the two-tiered rates.<\/li>\n\n<li>File the profits tax return (BIR51). A company with gross income must submit its financial statements, auditor&#8217;s report and tax computation with it.<\/li>\n\n<li>Pay the assessed tax, plus provisional tax for the next year based on the profits just assessed.<\/li>\n\n<li>File the Employer&#8217;s Return (BIR56A with an IR56B per employee) within one month of issue, and IR56E, IR56F or IR56G as staff join, leave or depart.<\/li>\n\n<li>Pay MPF contributions monthly, generally by the 10th day of each month.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Documents needed for a Hong Kong audit and profits tax return<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Auditors and the IRD expect source records that tie to the ledger. Have these ready first.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bank statements for every account for the full year<\/li>\n\n<li>Sales and purchase invoices, receipts and contracts<\/li>\n\n<li>Fixed asset register<\/li>\n\n<li>Payroll records, IR56 forms and MPF remittance statements<\/li>\n\n<li>Loan, lease and intercompany agreements<\/li>\n\n<li>Prior-year audited accounts and tax computation<\/li>\n\n<li>IRD notices of assessment<\/li>\n\n<li>For an offshore claim: contracts and evidence of where the profit-producing work was done<\/li>\n\n<li>For an FSIE exception: evidence of economic substance in Hong Kong, or of holding at least 5% for at least 12 months<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Hong Kong profits tax return deadlines and payroll rates (2025\/26 returns)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Profits tax returns for 2025\/26 were issued on 1 April 2026 and are due within one month. Block extensions for tax representatives run to 1 February 2027, depending on the accounting date.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Amount \/ deadline<\/th><\/tr><\/thead><tbody><tr><td>Profits tax return (BIR51), standard<\/td><td>Within 1 month of issue<\/td><\/tr><tr><td>&#8220;N&#8221; code: year-end 1 April &#8211; 30 November 2025<\/td><td>No extension<\/td><\/tr><tr><td>&#8220;D&#8221; code: year-end 1 &#8211; 31 December 2025<\/td><td>31 August 2026 (paper); 2 October 2026 (e-filed)<\/td><\/tr><tr><td>&#8220;M&#8221; code: year-end 1 January &#8211; 31 March 2026<\/td><td>16 November 2026<\/td><\/tr><tr><td>&#8220;M&#8221; code with a 2025\/26 loss<\/td><td>1 February 2027<\/td><\/tr><tr><td>E-filing through the Business Tax Portal<\/td><td>Further 1 month, on application<\/td><\/tr><tr><td>First return for a new company<\/td><td>Issued about 18 months after incorporation; 3 months to file<\/td><\/tr><tr><td>Employer&#8217;s Return (BIR56A \/ IR56B)<\/td><td>Within 1 month of issue (1 April 2026)<\/td><\/tr><tr><td>New employee (IR56E)<\/td><td>Within 3 months of the start date<\/td><\/tr><tr><td>Leaver (IR56F) \/ leaving Hong Kong (IR56G)<\/td><td>1 month before cessation \/ departure<\/td><\/tr><tr><td>MPF mandatory contributions<\/td><td>5% each from employer and employee; relevant income HK$7,100 to HK$30,000 a month (cap HK$1,500 each)<\/td><\/tr><tr><td>Late or incorrect return<\/td><td>Additional tax up to 3 times the tax undercharged, or prosecution<\/td><\/tr><tr><td>Insufficient records<\/td><td>Fine of up to HK$100,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Block extension dates apply to returns filed by a tax representative for 2025\/26. Government deadlines and statutory rates only.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How much profits tax on HK$3 million? A worked example for 2025\/26<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A nominated Hong Kong corporation with HK$3 million of assessable profits for 2025\/26 owes HK$330,000 before the one-off reduction, an effective rate of 11%, and HK$327,000 after it. It should also plan for HK$330,000 of provisional tax for 2026\/27, based on the same profits.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>First HK$2,000,000 at 8.25%: HK$2,000,000 \u00d7 8.25% = HK$165,000.<\/li>\n\n<li>Remaining HK$1,000,000 at 16.5%: HK$1,000,000 \u00d7 16.5% = HK$165,000.<\/li>\n\n<li>Tax before reduction: HK$165,000 + HK$165,000 = HK$330,000; effective rate HK$330,000 \u00f7 HK$3,000,000 = 11%.<\/li>\n\n<li>One-off 2025\/26 reduction of 100% of final tax, capped at HK$3,000: HK$330,000 \u2212 HK$3,000 = HK$327,000.<\/li>\n\n<li>If the company were a connected entity that is not nominated: HK$3,000,000 \u00d7 16.5% = HK$495,000, or HK$492,000 after the reduction. Nomination saves HK$165,000.<\/li>\n\n<li>Provisional tax for 2026\/27, based on the HK$3,000,000 assessed for 2025\/26: HK$330,000. The reduction applies to final tax only.<\/li>\n\n<li>2025\/26 final tax plus 2026\/27 provisional tax: HK$327,000 + HK$330,000 = HK$657,000.<\/li>\n\n<li>Holdover: if 2026\/27 profits are expected to be HK$2,500,000, below 90% of HK$3,000,000 (HK$2,700,000), provisional tax on that figure is HK$165,000 + (HK$500,000 \u00d7 16.5% = HK$82,500) = HK$247,500. The amount that could be held over is HK$330,000 \u2212 HK$247,500 = HK$82,500.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Assumptions: a corporation nominated for the two-tiered rates; HK$3,000,000 of assessable profits for 2025\/26 after deductions; provisional tax at the same rates; no losses brought forward. The reduction was passed by the Legislative Council on 13 May 2026 and is applied without an application.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Profits tax calendar for a company with a 31 March 2026 year-end<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A company with a 31 March year-end files its 2025\/26 return by 16 November 2026 under the IRD block extension. It then has one month from the date of the notice of assessment to object.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>When<\/th><th>What<\/th><th>Deadline<\/th><th>Authority<\/th><\/tr><\/thead><tbody><tr><td>31 March 2026<\/td><td>Financial year ends: the basis period for 2025\/26<\/td><td>Year-end<\/td><td>Company<\/td><\/tr><tr><td>1 April 2026<\/td><td>IRD issues the 2025\/26 profits tax return (BIR51) and Employer&#8217;s Return<\/td><td>Employer&#8217;s Return within 1 month<\/td><td>IRD<\/td><\/tr><tr><td>16 November 2026<\/td><td>File BIR51 with audited financial statements and tax computation (M code, block extension)<\/td><td>16 November 2026, or 1 February 2027 for a loss case<\/td><td>IRD<\/td><\/tr><tr><td>After the return is assessed<\/td><td>Notice of assessment: 2025\/26 final tax less up to HK$3,000, plus 2026\/27 provisional tax<\/td><td>Pay by the dates on the demand note<\/td><td>IRD<\/td><\/tr><tr><td>Within 1 month after the notice is issued<\/td><td>Lodge a written objection if the assessment is wrong<\/td><td>1 month<\/td><td>IRD<\/td><\/tr><tr><td>Later of 28 days before the due date or 14 days after the notice<\/td><td>Apply to hold over provisional tax if 2026\/27 profits are likely to be under 90% of 2025\/26, or the business has closed or become dormant<\/td><td>As stated<\/td><td>IRD<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Common Hong Kong accounting and tax mistakes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Most penalties come from late returns, weak records and wrong assumptions about what is exempt.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Claiming the 8.25% rate in more than one group company: only one nominated connected entity qualifies each year.<\/li>\n\n<li>Assuming a small company needs no audit: only dormant companies are exempt.<\/li>\n\n<li>Filing BIR51 without supporting documents: a company with gross income must submit its accounts and tax computation.<\/li>\n\n<li>Treating foreign dividends or gains as automatically exempt: FSIE rules can tax them for multinational group members.<\/li>\n\n<li>Missing MPF enrolment: employees aged 18 to 64 must be enrolled within the first 60 days.<\/li>\n\n<li>Forgetting IR56G: it is due at least 1 month before an employee leaves Hong Kong.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Hong Kong profits tax terms explained<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">These terms appear on IRD returns, assessments and notices.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Term<\/th><th>Meaning<\/th><\/tr><\/thead><tbody><tr><td>BIR51<\/td><td>The profits tax return for corporations. A company with gross income files it with its financial statements, auditor&#8217;s report and tax computation.<\/td><\/tr><tr><td>Assessable profits<\/td><td>Profits arising in or derived from Hong Kong from a trade, profession or business, after allowable deductions. Profits from selling capital assets are excluded.<\/td><\/tr><tr><td>Year of assessment<\/td><td>The tax year from 1 April to 31 March. Profits are assessed on the financial year ending within it, called the basis period.<\/td><\/tr><tr><td>Provisional tax<\/td><td>Tax paid in advance for the current year, based on the profits assessed for the preceding year, and set off against the final tax later.<\/td><\/tr><tr><td>Holdover<\/td><td>An application to reduce provisional tax, for example where profits are likely to be under 90% of the previous year&#8217;s.<\/td><\/tr><tr><td>Connected entity<\/td><td>An entity that controls, or is under common control with, another, where control means more than 50%. Only one can be nominated for the two-tiered rates.<\/td><\/tr><tr><td>Offshore claim<\/td><td>A claim that profits arose outside Hong Kong and so are not chargeable, even if remitted. The IRD decides it on the facts.<\/td><\/tr><tr><td>MNE entity<\/td><td>For FSIE purposes, a person that is, or acts for, a multinational group, or an entity in one, whatever its size.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-faq has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Does Hong Kong have GST or VAT?<\/summary>\n<p class=\"wp-block-paragraph\">No. Hong Kong has no VAT, GST or general sales tax of any kind.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Is an audit mandatory for every Hong Kong company?<\/summary>\n<p class=\"wp-block-paragraph\">Yes, for every company except a dormant one, regardless of size. Audited financial statements support the profits tax return each year.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Can my Hong Kong company claim offshore profits and pay no profits tax?<\/summary>\n<p class=\"wp-block-paragraph\">Possibly. Hong Kong&#8217;s territorial source basis means profits genuinely arising outside Hong Kong may fall outside the profits tax charge, but the Inland Revenue Department tests this on the facts. We assess the position honestly and build the contemporaneous documentation a claim requires \u2014 or tell you it isn&#8217;t supportable.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>When is the profits tax return due in Hong Kong?<\/summary>\n<p class=\"wp-block-paragraph\">Within one month of the issue date, which for most companies is 1 April. Under the IRD&#8217;s block extension scheme for tax representatives, 2025\/26 &#8220;D&#8221; code returns were due by 31 August 2026 (2 October 2026 if e-filed) and &#8220;M&#8221; code returns are due by 16 November 2026.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>When does a new Hong Kong company receive its first profits tax return?<\/summary>\n<p class=\"wp-block-paragraph\">Generally about 18 months after incorporation, with 3 months from the issue date to file it. The first accounts still need an audit.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Does a dormant Hong Kong company need an audit?<\/summary>\n<p class=\"wp-block-paragraph\">No. A company that has passed and delivered a special resolution declaring itself dormant is exempt from the audit requirement. The IRD accepts profits tax returns from dormant companies without audited financial statements.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Are dividends and capital gains taxed in Hong Kong?<\/summary>\n<p class=\"wp-block-paragraph\">Generally not. Profits from selling capital assets are outside profits tax, and dividends from a corporation subject to Hong Kong profits tax are excluded. Multinational group members can be taxed on foreign-sourced dividends and disposal gains under the FSIE regime unless an exception applies.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Is there a profits tax reduction for 2025\/26 in Hong Kong?<\/summary>\n<p class=\"wp-block-paragraph\">Yes. Final profits tax for 2025\/26 is reduced by 100%, up to HK$3,000 per case. The Legislative Council passed the measure on 13 May 2026, and it is applied automatically in the final assessment. It does not reduce provisional tax for 2026\/27.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Can I reduce provisional profits tax if my profits fall?<\/summary>\n<p class=\"wp-block-paragraph\">Yes, by applying to hold it over. Grounds include assessable profits likely to be under 90% of the previous year&#8217;s, or the business having closed or become dormant. Apply by the later of 28 days before the due date or 14 days after the notice for payment was issued.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>How long do I have to object to a Hong Kong tax assessment?<\/summary>\n<p class=\"wp-block-paragraph\">One month after the date of issue of the notice of assessment. The objection must be lodged with the IRD in writing within that time.<\/p>\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Can a Hong Kong company carry forward tax losses?<\/summary>\n<p class=\"wp-block-paragraph\">Yes. Losses made in an accounting year are carried forward and set off against future profits of the same trade. If a loss is expected for the current year, provisional tax can be held over.<\/p>\n<\/details>\n\n\n<\/div>\n\n\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose vv-sources has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n\n<h2 class=\"wp-block-heading\">Sources<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Figures on this page were checked against these official sources on 6 October 2026. Rates, fees and deadlines change, so confirm the current position with the authority before acting.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/tax\/bus_pft.htm\" rel=\"noopener\" target=\"_blank\">Profits Tax<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/pdf\/bel26e.pdf\" rel=\"noopener\" target=\"_blank\">Block Extension Scheme for Lodgement of 2025\/26 Tax Returns (circular to tax representatives)<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/faq\/2tr.htm\" rel=\"noopener\" target=\"_blank\">FAQ &#8211; Two-tiered Profits Tax Rates<\/a><\/li>\n\n<li>Companies Registry, <a href=\"https:\/\/www.cr.gov.hk\/en\/faq\/companies-ordinance\/co-account-audit.htm\" rel=\"noopener\" target=\"_blank\">FAQ &#8211; Companies Ordinance: Accounts and Audit<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/tax\/ere.htm\" rel=\"noopener\" target=\"_blank\">Employer&#8217;s Return<\/a><\/li>\n\n<li>Mandatory Provident Fund Schemes Authority, <a href=\"https:\/\/www.mpfa.org.hk\/en\/mpf-system\/mandatory-contributions\/employees\" rel=\"noopener\" target=\"_blank\">Mandatory Contributions &#8211; Employees<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/tax\/bus_fsie.htm\" rel=\"noopener\" target=\"_blank\">Foreign-sourced Income Exemption<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/tax\/dta_inc.htm\" rel=\"noopener\" target=\"_blank\">Comprehensive Double Taxation Agreements concluded<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/faq\/budget2026_27.htm\" rel=\"noopener\" target=\"_blank\">2026-27 Budget: Tax Measures (FAQ)<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/pdf\/2026\/BriefGuide20252026.pdf\" rel=\"noopener\" target=\"_blank\">A Brief Guide to Taxes Administered by the Inland Revenue Department 2025-2026<\/a><\/li>\n\n<li>Inland Revenue Department, <a href=\"https:\/\/www.ird.gov.hk\/eng\/pdf\/ind_obje.pdf\" rel=\"noopener\" target=\"_blank\">Objections and Holdovers<\/a><\/li>\n<\/ol>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-prose vv-related has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n\n<h2 class=\"wp-block-heading\">Related services and guides<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/vivosgroup.com\/hk\/insights\/hong-kong-two-tiered-profits-tax-explained\/\">How the two-tiered 8.25% rate actually works<\/a> \u2014 connected entities and the election<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/hk\/insights\/hong-kong-mpf-employer-contribution-guide\/\">MPF employer obligations<\/a> \u2014 5% contributions and deadlines<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/hk\/services\/corporate-secretarial\/\">Company secretary and annual return<\/a> \u2014 NAR1 and Business Registration<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/blog\/insights\/singapore-malaysia-hong-kong-uae-corporate-tax-compared\/\">Corporate tax compared across four jurisdictions<\/a> \u2014 how Hong Kong compares<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/hk\/insights\/hong-kong-company-audit-requirements\/\">Hong Kong company audit requirements<\/a> \u2014 who needs an audit and which reporting rules apply<\/li>\n\n\n\n<li><a href=\"https:\/\/vivosgroup.com\/services\/accounting-tax\/\">Accounting and tax at group level<\/a> \u2014 reporting to a Singapore parent<\/li>\n<\/ul>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull vv-section vv-section--navy vv-section--tight has-global-padding is-layout-constrained wp-container-core-group-is-layout-2eebee45 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Talk to us about accounting and tax in Hong Kong<\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button vv-btn-gold\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/hk\/contact\/\">Get in touch<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Does Hong Kong have GST or VAT?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Hong Kong has no VAT, GST or general sales tax of any kind.\"}},{\"@type\":\"Question\",\"name\":\"Is an audit mandatory for every Hong Kong company?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, for every company except a dormant one, regardless of size. Audited financial statements support the profits tax return each year.\"}},{\"@type\":\"Question\",\"name\":\"Can my Hong Kong company claim offshore profits and pay no profits tax?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Possibly. Hong Kong\u2019s territorial source basis means profits genuinely arising outside Hong Kong may fall outside the profits tax charge, but the Inland Revenue Department tests this on the facts. We assess the position honestly and build the contemporaneous documentation a claim requires \u2014 or tell you it isn\u2019t supportable.\"}},{\"@type\":\"Question\",\"name\":\"When is the profits tax return due in Hong Kong?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Within one month of the issue date, which for most companies is 1 April. Under the IRD\u2019s block extension scheme for tax representatives, 2025\/26 \u201cD\u201d code returns were due by 31 August 2026 (2 October 2026 if e-filed) and \u201cM\u201d code returns are due by 16 November 2026.\"}},{\"@type\":\"Question\",\"name\":\"When does a new Hong Kong company receive its first profits tax return?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Generally about 18 months after incorporation, with 3 months from the issue date to file it. The first accounts still need an audit.\"}},{\"@type\":\"Question\",\"name\":\"Does a dormant Hong Kong company need an audit?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. A company that has passed and delivered a special resolution declaring itself dormant is exempt from the audit requirement. The IRD accepts profits tax returns from dormant companies without audited financial statements.\"}},{\"@type\":\"Question\",\"name\":\"Are dividends and capital gains taxed in Hong Kong?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Generally not. Profits from selling capital assets are outside profits tax, and dividends from a corporation subject to Hong Kong profits tax are excluded. Multinational group members can be taxed on foreign-sourced dividends and disposal gains under the FSIE regime unless an exception applies.\"}},{\"@type\":\"Question\",\"name\":\"Is there a profits tax reduction for 2025\/26 in Hong Kong?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. Final profits tax for 2025\/26 is reduced by 100%, up to HK$3,000 per case. The Legislative Council passed the measure on 13 May 2026, and it is applied automatically in the final assessment. It does not reduce provisional tax for 2026\/27.\"}},{\"@type\":\"Question\",\"name\":\"Can I reduce provisional profits tax if my profits fall?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, by applying to hold it over. Grounds include assessable profits likely to be under 90% of the previous year\u2019s, or the business having closed or become dormant. Apply by the later of 28 days before the due date or 14 days after the notice for payment was issued.\"}},{\"@type\":\"Question\",\"name\":\"How long do I have to object to a Hong Kong tax assessment?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"One month after the date of issue of the notice of assessment. The objection must be lodged with the IRD in writing within that time.\"}},{\"@type\":\"Question\",\"name\":\"Can a Hong Kong company carry forward tax losses?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. Losses made in an accounting year are carried forward and set off against future profits of the same trade. If a loss is expected for the current year, provisional tax can be held over.\"}}]}<\/script>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Service\",\"serviceType\":\"Accounting, Bookkeeping and Tax Compliance\",\"name\":\"Accounting, Bookkeeping and Tax Compliance\",\"url\":\"https:\/\/vivosgroup.com\/hk\/services\/accounting-tax\/\",\"provider\":{\"@type\":\"Organization\",\"name\":\"VIVOS Corporate Services (HK) Ltd.\",\"url\":\"https:\/\/vivosgroup.com\/hk\/\",\"identifier\":\"Business Registration No. 80545137\",\"sameAs\":[\"https:\/\/vivosgroup.com\/\"]},\"areaServed\":{\"@type\":\"Country\",\"name\":\"Hong Kong\"}}<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Hong Kong services Accounting, Audit and Profits Tax Services in Hong Kong Hong Kong charges profits tax at 8.25% on the first HK$2 million of assessable profits and 16.5% above, has no VAT, GST or sales tax, and requires every company except a dormant one to file audited financial statements with its profits tax return. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-32","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/pages\/32","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/comments?post=32"}],"version-history":[{"count":7,"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/pages\/32\/revisions"}],"predecessor-version":[{"id":209,"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/pages\/32\/revisions\/209"}],"up":[{"embeddable":true,"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/pages\/16"}],"wp:attachment":[{"href":"https:\/\/vivosgroup.com\/hk\/wp-json\/wp\/v2\/media?parent=32"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}