Hong Kong Profits Tax – Filing Requirements and Payment of Tax

The tax year starts on 1st April. The assessment to profits tax is provisional and is based on the previous year’s assessable profits with 75% of the assessment being due by the 3rd quarter and the final 25% being due at the year-end. Tax payments delayed less than 6 months are subject to a 5% non-deductible surcharge whereas payments overdue by more than 6 months are subject to a 10% non-deductible surcharge. A tax credit is granted where the previous year’s assessment exceeds the currents year’s assessable profits.