The Inland Revenue Department (“IRD”) conducted the bulk issuance of 2025/26 Profits Tax Returns in early April. Businesses should now review the applicable filing deadlines and any new compliance obligations for the current year.

Hong Kong companies (and non-Hong Kong companies carrying on business in Hong Kong) are required to comply with ongoing profits tax reporting obligations. These obligations apply to both first-time Profits Tax Returns and subsequent annual returns.

Where a tax representative has been properly appointed, Profits Tax Returns may be filed under the Block Extension Scheme, subject to the entity’s accounting date.

For newly incorporated Hong Kong companies, the IRD typically issues the first Profits Tax Return (“PTR”) around 18 months after incorporation. Upon receipt, the first PTR is generally required to be filed within three months.

After the first PTR has been filed, the IRD normally issues Profits Tax Returns annually. In practice, the IRD may temporarily suspend issuing returns for companies that have previously reported nil assessable profits or substantial tax losses. Such arrangements are administrative, non-statutory, and may be withdrawn at any time.

Even where a Profits Tax Return is not issued, businesses remain subject to Hong Kong tax compliance obligations. Preparing annual profits tax computations and maintaining supporting documentation can help mitigate future compliance risks, support tax positions, reduce administrative pressure when filings resume, and demonstrate a consistent compliance record with the IRD.

For the current year of assessment, the following statutory and extended filing deadlines apply to both first-time and subsequent Profits Tax Returns where a tax representative has been appointed:

• Accounting date between 1 April 2025 and 30 November 2025
  → No block extension applies
  → Returns are generally due one month from the issue date (or three months for the first PTR)
• Accounting date between 1 December 2025 and 31 December 2025
  → Extended filing deadline: 17 August 2026
• Accounting date between 1 January 2026 and 31 March 2026
  → Extended filing deadline: 16 November 2026

Businesses should identify their applicable deadlines early to allow sufficient time for audit completion and internal review.

With effect from the Year of Assessment 2025/26, Hong Kong constituent entities of multinational enterprise (“MNE”) groups within the scope of BEPS Pillar Two are required to electronically file their Profits Tax Returns via the IRD’s Business Tax Portal (“BTP”).

This requirement applies regardless of whether:

• Hong Kong profits tax is payable; or
• Pillar Two top-up tax arises

Affected entities should ensure that appropriate BTP registration, user access, and digital authorisation arrangements are in place. Entities subject to mandatory electronic filing may also be eligible for an additional one-month filing extension, subject to proper notification to the IRD.

Failure to comply with Profits Tax Return obligations — including late filing, incorrect filings, or failure to notify chargeability — may result in penalties of up to HK$10,000 plus up to three times the amount of tax underpaid.

Companies are also required to maintain proper accounting records for at least seven years. Failure to do so may attract significant penalties.

Profits tax compliance involves more than meeting filing deadlines. It requires coordination across finance, audit, and tax functions, as well as awareness of evolving administrative requirements such as mandatory electronic filing.

Our team supports clients with profits tax compliance, audit coordination, and Pillar Two obligations, helping businesses manage risk and meet their Hong Kong filing requirements efficiently. Get in touch with us to stay ahead of your 2025/26 obligations.