IRD Issues Updated Guidelines on Profits Tax Filing for Year of Assessment 2024/2025
Our Hong Kong Tax team would like to inform clients about important updates recently announced by the Inland Revenue Department (IRD) regarding Profits Tax filing requirements for the Year of Assessment 2024/25.
Key Filing Deadlines
The IRD has confirmed the following submission deadlines for Profits Tax returns:
- For companies with accounting year ended between April 1, 2024 and November 30, 2024: May 15, 2025
- For companies with accounting year ended between December 1, 2024 and December 31, 2024: August 15, 2025
- For companies with accounting year ended between January 1, 2025 and March 31, 2025: November 15, 2025
Tax representatives with multiple clients may be eligible for the extended filing deadlines under the block extension scheme.
Electronic Filing Requirements
Beginning with the 2024/25 Year of Assessment, the IRD has expanded the mandatory e-filing requirement to include:
- All companies with annual turnover exceeding HK$3 million
- All incorporated businesses registered within the last three years
- Companies participating in specified tax incentive schemes
Non-compliant taxpayers may face penalties and loss of extension privileges in future years.
Updated Documentation Requirements
The IRD has enhanced documentation requirements for certain transactions:
- Additional disclosure forms for related party transactions
- Expanded transfer pricing documentation for cross-border activities
- Certification requirements for specific tax exemption claims
- Enhanced substantiation for offshore profits claims
Recent Tax Policy Changes
The IRD notice also references several recent tax policy changes that may affect your business:
- Refinements to the two-tiered profits tax regime
- Updates to tax concessions for specified industries
- New administrative measures for tax loss utilization
- Enhanced anti-avoidance provisions for certain arrangements
Recommendations for Businesses
Our firm recommends that Hong Kong businesses:
- Review their tax compliance calendar to ensure timely submission
- Assess eligibility for any applicable tax concessions or incentives
- Prepare enhanced documentation for related party transactions
- Consider the impact of recent tax policy changes on tax positions
How Our Firm Can Assist
Our Hong Kong Tax team is well-equipped to help you navigate these requirements:
- Preparation and submission of Profits Tax returns
- Assessment of eligibility for tax concessions and incentives
- Development of robust transfer pricing documentation
- Strategic tax planning in light of recent policy changes
For personalized advice on your Hong Kong tax matters, please feel free to contact us and check our website: https://www.serviceonnewgrounds.com
References
- Inland Revenue Department (2025) https://www.ird.gov.hk/eng/ppr/archives/25022609.htm
