Hong Kong: Guide to 2022-2023 profits tax filing

A guide to profits tax filing includes key development and due dates

A guide to profits tax filing includes key development and due dates

The 2022-2023 profits tax filing season started off with the bulk issuance of the 2022-2023 profits tax returns on 3 April 2023.  

Due dates for filing profits tax returns

The extended due dates for filing the 2022-2023 profits tax returns under the block extension scheme (i.e., for taxpayers with a tax representative) are as follows:

Accounting date code

Extended due date

Further extended due date for semi-electronic / electronic filing*

“N” code
(1 April 2022 to 30 November 2022)

3 May 2023

(No extension)

3 June 2023

“D” code
(1 December to 31 December 2022)

15 August 2023

15 September 2023

“M” code – profits cases
(1 January 2023 to 31 March 2023)

15 November 2023

15 December 2023

“M” code – loss cases
(1 January 2023 to 31 March 2023)

31 January 2024

31 January 2024

* A 1-month extension will be granted for filing the returns semi-electronically or electronically

Key changes in the 2022-2023 profits tax returns

  • Notes on the first page of BIR 51 / BIR 52: Small corporations and businesses with gross income not exceeding HK$2 million also need to submit the supporting documents (e.g., audited financial statements, certified management accounts and tax computation, etc.) together with the profits tax returns from 1 April 2023.
  • Item 3.4.2 in BIR 51: Updated to include the assessable profits derived by qualifying ship agents, managers, or brokers that are chargeable at a concessionary tax rate.
  • Item 7.10 in BIR 51: New boxes for insurance corporations to: (1) indicate whether they adopted the risk-based capital (RBC) regime during the basis period of year of assessment (YOA) 2022-2023, (2) state the amount of one-off adjustment arising from adopting the RBC regime, and (3) indicate whether they will elect to spread the one-off adjustment as income/loss equally over five YOAs (i.e., YOA 2022-2023 and the next succeeding four YOAs), subject to enactment and operation of the relevant legislation.
  • Item 7.11 in BIR 51 / Item 7.7 in BIR 52: New boxes for taxpayers to indicate whether: (1) they are an eligible family-owned investment holding vehicle and (2) they elect to enjoy the family office concessionary tax regime. If yes to (1) above, taxpayers are required to complete the new Form IR1479.
  • Item 7.12 in BIR 51 / Item 7.8 in BIR 52: A new checkbox for taxpayers to indicate whether they are a family-owned special purpose entity under the family office concessionary tax regime.
  • Item 7.13 in BIR 51 / Item 7.9 in BIR 52: A new checkbox for taxpayers to indicate whether they derived and/or received any specified foreign-sourced income in Hong Kong under the foreign-sourced income exemption (FSIE) regime. If yes, taxpayers are required to complete the new Form IR1478.
  • Items 9.16 to 9.18 in BIR 51: New checkboxes on the new supplementary forms S16 to S18 to be completed by taxpayers electing to enjoy the concessionary tax regime for qualifying ship agents / managers / brokers.

Key profits tax developments relevant to return filing

  • Implementation of the FSIE regime in Hong Kong
  • The profits tax concession for maritime services
  • The proposed family office concessionary tax regime in Hong Kong
  • Profits tax exemption for debt instruments issued in Hong Kong by the Mainland Government
  • Foreign tax credit / deduction to be included for computing 2023-2024 provisional tax payable

KPMG observation

There are various developments which may affect the 2022-2023 profits tax filing, namely (1) the changes to the profits tax returns, (2) the new return filing requirements (including electronic filing of the supplementary forms and Forms IR1478 / IR1479), (3) the new profits tax legislation and (4) the new profits tax cases. Business groups need to evaluate whether any of these changes will affect their 2022-2023 profits tax filing positions and consult their tax adviser if necessary.

For more information contact a KPMG tax professional:

David Ling | +1 609 874 4381 | davidxling@kpmg.com


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