Tax Information : Businesses : Completion of Profits Tax Returns

	Completion of Profits Tax Returns
		Profits Tax Returns
		Supplementary Forms to Profits Tax Returns
		Advice on Completion of Profits Tax Returns
		Frequently Asked Questions & Answers on Completion of Profits Tax Returns
		Frequently Asked Questions & Answers on Completion of Supplementary Forms

Note: Blank tax return forms are not available for download from the Web site for completion. If you want this Department to send you an original or a duplicate Tax Return, please approach our Enquiry Service Centre (Telephone No.: 187 8088) for assistance. The specimen Return forms, Notes and Instructions and Pro forma computation that can be downloaded from this web page are saved in pdf format which can be viewed and printed by using the Adobe (R) Acrobat (R) Reader software.

Profits Tax Returns

There are three series of Profits Tax return forms. The specimen return forms available for download hereunder are for reference only. No attempt should be made to use a printed copy of the specimen form for filing purpose.

(1)	Profits Tax Return - Corporations (BIR 51)
(2)	Profits Tax Return - Persons Other Than Corporations (BIR 52)
(3)	Profits Tax Return - In Respect Of Non-Resident Persons (BIR 54)

Supplementary Forms to Profits Tax Returns

As from 1 April 2005, the Profits Tax Returns (BIR 51 & 52) are simplified and most of the required particulars e.g. tax data and financial data etc. are relocated to a Supplementary Form (IR 51S / IR 52S). An electronic supplementary form is provided in the Department's web site for download and completion. After its completion, its printed copy can be used as a supporting document for filing. But the Department requests the submission of the completed electronic form, saved in a CD-ROM, DVD-ROM or diskette, to facilitate data capture. The use of the electronic version of the supplementary form is not compulsory. A paper version of the supplementary form is annexed to the tax return for those taxpayers who prefer not to use the electronic version.

Advice on Completion of Profits Tax Returns

(a)	Notes and Instructions - BIR 51
(b)	Notes and Instructions - BIR 52
(c)	Notes and Instructions - BIR 54 (printed on page 4 of BIR 54)
(d)	Notes and Instructions - IR 51S
(e)	Notes and Instructions - IR 52S

Details of the documents and information that should be submitted together with the return forms are specified therein.

(2)	All items in the Profits Tax Return must be completed fully and properly. Return should be filed on time, together with the following documents (collectively called "Supporting Documents"):

(a)	For corporations, they are

(i)	a certified copy of Balance Sheet, Auditor's Report where required by Hong Kong or foreign Law or has otherwise been prepared and Profit and Loss Account in respect of the basis period;
(ii)	a tax computation with supporting schedules showing how the amount of Assessable Profits (or Adjusted Loss) has been arrived at;
(iii)	the Supplementary Form (IR 51S); and
(iv)	other documents and information as specified in the Notes and Instructions.

(b)	For unincorporated businesses, they are

(i)	a certified copy of Balance Sheet and Profit and Loss Account in respect of the basis period;
(ii)	a tax computation with supporting schedules showing how the amount of Assessable Profits (or Adjusted Loss) has been arrived at;
(iii)	the Supplementary Form (IR 52S); and
(iv)	other documents and information as specified in the Notes and Instructions.

(3)

Concession for Small Corporations and Businesses A concession has been granted to small corporations and businesses with respect to Returns issued after 1 April 2000 provided the total gross income of the business did not exceed $500,000 for the basis period. The concession is that for these "small corporations and businesses" it will no longer be necessary to submit the supporting documents except item (iii) above when lodging the Return. However, it needs to be clearly understood that these documents must still be prepared before completion of the return and may be called for by the Department in appropriate circumstances. For explanation on what is a small corporation or business, you may refer to the "Notes and Instructions" to Return.

(4)	For corporations, audited accounts should be submitted with the returns in all cases except:-

(a)	for small corporations as defined in the "Notes and Instructions" to return;
(b)	for dormant companies within the terms of the Companies Ordinance;
(c)	for companies incorporated in a jurisdiction whose laws do not require accounts to be audited; and
(d)	for Hong Kong branch of a foreign company provided that the following information is supplied together with the return:-

(i)	the place of incorporation of the foreign company,
(ii)	whether the laws of that country require a statutory audit of the world-wide accounts of the company,
(iii)	whether that audit has been conducted, and
(iv)	a brief summary of the financial and accounting records maintained by the Hong Kong branch.

(5)

Pro forma Profits Tax Computation A "Pro forma Profits Tax Computation" (Form IR957), which is intended to assist owner of an unincorporated business who has not appointed a tax representative to submit a tax computation showing how the amount of Assessable Profits/(Loss) has been arrived at, is attached to the Profits Tax Return for partnership business or can be obtained from the Central Enquiry Counter.

(6)	Election for Personal Assessment If any partner of a partnership decides that his/her share of profits/(loss) be dealt with under Personal Assessment, he/she may state his/her intention in the Profits Tax Return. However, election must be made in his/her own Tax Return - Individuals (BIR 60).

(7)

Hiring of a Practising Accountant to complete the Return Form The Inland Revenue Department does not require a person to engage a practising accountant in completing the Return Form. If a person has any difficulty in completing it, he/she should prepare such statement of account, as he/she is able to and explain how it has been constructed. He/she should also complete the return to the best of his/her ability. Taxpayer may also call upon the officers at the Central Enquiry Counter on the 1st Floor of Revenue Tower who will explain what is required, or direct him/her to see the Assessor handling his/her file. No charges are made for any services rendered by officers of the Department.

Frequently Asked Questions & Answers on Completion of Profits Tax Returns

Frequently Asked Questions & Answers on Completion of Supplementary Forms