The Art of Tax Filing

Off all the decisions you make when incorporating a company in Hong Kong, the most important once relates to taxes. After reading this article, you will better understand how the process of Completion of Profits Tax Return (“PTR”) and its submission to Inland Revenue Department (“IRD”), Hong Kong Tax Authority, works.

Your first PTR form will be issued by Inland Revenue Department after 18 months from the company’s date of incorporation. Once the PTR for your company is issued Startupr will notify you that the PTR submission due is in 3 months.

When reporting the financial year end date to Inland Revenue Department, the submission deadline of the annual PTR together with the audited financial statements are:

Financial year end as at Tax filing date Documents ready for audit
1) 31st March 15th Nov Not later than 1st Sept
2) 31st December 15th August Not later than 1st June
3) Other dates than (1) or (2) e.g.30th June 30th April Not later than mid of Feb

Taxes on income earned outside

Your company will not be subject to Hong Kong taxes if all your company’s income comes from outside HK. Once the company’s PTR and financial statements are submitted you may make an offshore claim. IRD will issue an offshore claim queries letter to you as a proof. You will need to provide IRD with passports of all company directors and/or sales representatives and company invoices, contracts or agreements and shipping documents (e.g. bill of lading). 

Startupr Hong Kong Limited