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Profits Tax Return

The first declaration of income tax comes to the company within 12 to 18 months from the date of registration. Duration of the first reporting period is determined by the leadership of the company itself. According to the requirements of the Inland Revenue Department a company must complete and submit the declaration within one month from receipt. To extend this deadline, a letter with explanation of the reasons should be sent to the Inland Revenue Department. In practice, the Inland Revenue Department sends out declarations to companies each year in early April.

 Accounts for profit tax in subsequent years

It is very important for the company to choose the date of the end of the first financial year (it can last from 12 to 18 months, let us remember), because this date will be the end of all subsequent reporting periods in the future. Thus, the first financial year may last up to 18 months and subsequent years - strictly 12.

 Schedule of submitting tax returns

By the end of the first reporting period, the Inland Revenue Department assigns each company a certain tax code, depending on what date the company has chosen as the end of its financial year, and annually publishes the schedule of submitting returns including deadlines to which the period of submitting tax returns is extended. Each tax group, as defined in accordance with the assigned code, should be guided by its "taxpayer schedule."

Schedule of submitting tax returns for 2009-2010:

Date of expiry of financial year

Tax code

The deadline for submission of return

1.04.2009 — 30.11.2009

N

May 03, 2010

1.12.2009 — 31.12.2009

D

August 16, 2010

1.01.2010 — 31.03.2010

M

November 15, 2010

Annually in March, the Inland Revenue Department releases the schedule of submitting tax returns for the next financial year. In practice, this schedule does not differ much from year to year. Changes in the schedule may be done in case of weekends or holidays. Accounting should be fully prepared well prior to the deadline of submitting profit tax returns in order to leave time for passing the audit, as the return comes to the tax authority alone with the auditor's report and other documents.

You can see more details on the website of the Inland Revenue Department (http://www.gov.hk/en/residents/taxes/taxfiling/filing/types/profitstax.htm#wtf).