Hong Kong Yearly Filings: What You Need to Know for 2024
Every Hong Kong company has to fulfil annual requirements to ensure compliance with the law, according to the Companies Ordinance and Inland Revenue Ordinance.
A crucial aspect of this compliance involves yearly filings, which inform the authorities about your company's activities and finances. This article will break down the requirements for 2024 to help you stay on top of your obligations.
This article will make it easy for you to keep track of what documents you need to submit to the Hong Kong government and avoid potential penalties for missing a filing.
Profits Tax Return
Before filing your Profits Tax Return for 2023/24, you must conduct the obligatory annual audit by consolidating your company's financial statements and submitting them to a Certified Public Accountant (CPA). Under Hong Kong law, every incorporated company must conduct an annual audit.
Non-profit organisations are also required to conduct a yearly audit, and there may be circumstances where they are obligated or encouraged to share the details with the public to uphold transparency.
In addition to Profits Tax Return, audited financial statements serve as the basis for several other filings. You can learn more about the annual audit in our article, 'Hong Kong End-Of-Year Financial Reporting.'
Tax Return - Individuals (BIR60)
BIR60 is for individuals who earn income in Hong Kong. This also includes sole proprietorships (unincorporated businesses), rental income for properties that only you own, and applicable deductions and allowances.
BIR60 is issued at the start of May (2 May 2024). You must file Tax Return - Individuals within a month after receiving the Tax Return if you were not the sole owner of your company during the tax year or within three months if you were the sole owner. There's an automatic one-month extension if you file BIR60 electronically.
You can extend the filing period under the Block Extension Scheme by appointing a tax representative such as ourselves.
Profits Tax Return (BIR51, BIR52 & BIR54)
The following three forms share many similarities, but you will receive the relevant one from the Inland Revenue Department (IRD), depending on your business structure:
BIR51 - Corporations: Used by incorporated businesses, such as limited and public companies.
BIR52 - Persons Other Than Corporations: For businesses that are not incorporated, such as partnerships.
BIR54 - In Respect Of Non-Resident Persons: Individuals or businesses who are not residents in Hong Kong.
Note: Numerous items have been added to BIR51, BIR52, and BIR54 for 2023/24. You can find the full list here, along with information regarding deadline extensions.
BIR51, BIR52, and BIR54 are issued at the start of April (2 April 2024). The deadline of your profits tax return depends on what type you are filing.
Moreover, you may have to file additional supplementary forms. Forms S1 to S18 and S20 allow you to provide additional information regarding applicable tax incentives and regimes. Forms IR1478, IR1481 and IR1482 are used to report foreign-sourced income and onshore gain. It's your responsibility to download relevant forms and fill them out electronically. Contact us if you are unsure which supplementary forms you must submit.
Property Tax Return (BIR57 & BIR58)
Co-owners, companies, and other legal entities are issued the relevant property tax return form. Those who receive it must report any income associated with the properties they own.
Rental income from a property you are the sole owner of is reported through Tax Return - Individuals (BIR60).
BIR57 and BIR58 are issued at the start of April (2 April 2024). You must file the Property Tax Return within a month of receiving it, with an extension of two weeks when filing electronically.
Annual Return (NAR1)
Not to be confused with the Tax Return, which we discussed above, the Annual Return (NAR1) is a document that outlines essential information about your company. It helps keep the Hong Kong Companies Registry informed about your company's structure and ownership.
All companies registered in Hong Kong must file the Annual Return. Here's some of the information the NAR1 form contains:
Company name
Registered office address
Contact information
Directors and shareholders
Company secretary
You file the Annual Return to the Registrar of Companies either by downloading and filling out the NAR1 form or electronically through the e-Services Portal. There is also a HK$105 fee you have to pay when filing your Annual Return.
Moreover, you must submit the form within 42 days of your company's anniversary, lest you risk paying a fine.
Our team can handle your Annual Return filings to ensure you do not get fined and free up your time to focus on running your business.
Employer's Return (BIR56A & IR56B)
Employer’s Returns of Remuneration and Pensions (BIR56A) is a consolidated report that contains the total amount of salaries, wages, bonuses, and other forms of compensation paid to employees.
The IR56B form is for each employee and details the remuneration paid throughout the year.
Every company in Hong Kong that pays remuneration must submit an annual Employer's Return. Learn more about what is required from you in our article Employer’s Return In Hong Kong.
The Inland Revenue Department sends out forms at the start of April (2 April 2024); however, the responsibility to file them still falls on the employer. You have a deadline of one month to submit it after they're sent out.
If you need to extend the deadline, you must send a written application to the IRD; we can assist you with that.
Business Registration Certificate (BRC) Renewal
The Business Registration Office in Hong Kong sends out a business registration renewal demand note when a company's BRC is close to expiring. It is typically sent out in the middle of the month before the month it is about to expire—which is the anniversary date for most businesses.
Your BRC has a validity period of 1–3 years, depending on what you chose when you filled out the application.
If you did not receive the demand note even though your Business Registration Certificate is about to expire, it becomes your responsibility to contact the Business Registration Office. You can file the renewal in person or by post.
Note: Your Business Registration Certificate must be displayed prominently in all company offices.
Licences & Industry-Specific Filings
Does your business operate under a special licence or permit issued by a Hong Kong regulatory body?
If it does, you have to renew the licence regularly. The renewal frequency varies depending on the licence, but it usually falls under 1–3 years.
Some examples of licences and permits in Hong Kong that need regular renewal include:
Dealer's license under the Dealers in Precious Metals and Stones Registration System (DPMS)
Travel agent licence under the Travel Industry Authority (TIA)
Import and export licences under the Trade and Industry Department (TID)
Securities and Futures Commission (SFC) licences under the Securities and Futures Ordinance (SFO) for carrying out regulated activities
If your company carries out regulated activities and holds an SFC licence, you might be required to submit monthly financial returns under SFC's Financial Resources Rules. If you are not sure whether this rule applies to your business, contact Shepherd Asia.
Additional Business Obligations for Hong Kong Companies
Numerous other annual filings might apply to your Hong Kong company, as filing requirements can vary based on a range of factors. Your company must adhere to a range of regulations, such as:
Compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations
Data protection and privacy compliance
Environmental regulations
Intellectual property protection (trademarks, patents, and copyrights)
Additional requirements and regulations for subsidiaries
Keeping track of all of these different regulations can get complicated, especially if you do not reside permanently in Hong Kong. Fortunately, we at Shepherd Asia offer a wide range of services to help you incorporate and run your offshore business.
Tax Return - Individuals (BIR60)
BIR60 is for individuals who earn income in Hong Kong. This also includes sole proprietorships (unincorporated businesses), rental income for properties that only you own, and applicable deductions and allowances.
BIR60 is issued at the start of May (2 May 2024). You must file Tax Return - Individuals within a month after receiving the Tax Return if you were not the sole owner of your company during the tax year or within three months if you were the sole owner. There's an automatic one-month extension if you file BIR60 electronically.
You can extend the filing period under the Block Extension Scheme by appointing a tax representative such as ourselves.