Electronic Filing of Profits Tax Return
|A further extension of 2 WEEKS will be granted by the Department on application if the Profits Tax Returns are filed electronically.|
Guide to Electronic Filing of Profits Tax Return
Corporations and partnerships satisfying the conditions specified by the Commissioner of Inland Revenue can file their Profits Tax Returns for any year of assessment from 2014/15 to 2019/20 electronically under eTAX.
This Guide states the conditions that a corporation and a partnership must satisfy in order to use the Internet filing service and introduces the service for filing of Profits Tax Return through the Internet.
- The Conditions that a Corporation and a Partnership must satisfy in order to use the Internet Filing Service
- Services for Filing of Profits Tax Return through the Internet
- Apply for eTAX Password
- Frequently Asked Questions and Answers
A corporation must satisfy the following conditions in the relevant year:
- Its gross income does not exceed HK$2,000,000;
- It does not have any deemed assessable profits pursuant to section 20AE, 20AF, 20AX and/or 20AY of the Inland Revenue Ordinance ("IRO");
- It does not claim deduction for R&D expenditure under section 16B of the IRO and/or it does not have trading receipts or sale proceeds from intellectual property rights generated from R&D activities;
- It does not claim deduction for expenditure on energy efficient building installation under section 16I of the IRO;
- It is not a ship-owner;
- Its Assessable Profits / Adjusted Loss do not include any interest, profits/loss arising from "short / medium term debt instruments" (issued before 1 April 2018) as defined in section 14A(4) of the IRO, any profits / loss of a professional reinsurer or an authorized captive insurer as stipulated in section 14B of the IRO, or any qualifying profits / loss of a qualifying corporate treasury centre as defined in section 14C of the IRO, nor include any qualifying profits / loss of a qualifying aircraft lessor or qualifying aircraft leasing manager as defined in section 14G of the IRO, which are subject to tax at one-half of the tax rate;
- It does not claim any tax relief pursuant to an arrangement for avoidance of double taxation specified under section 49(1) or 49(1A) of the IRO;
- It has not obtained an advance ruling on any of its tax matter in relation to that year of assessment;
- It has not paid or accrued to a non-resident person any sum for the use of intellectual property specified in section 15(1)(a), (b) or (ba) of the IRO or for the assignment of performer's right in section 15(1)(bb) of the IRO;
- It does not claim debt treatment for an arrangement as "an originator" or "a bond-issuer" of a specified alternative bond scheme under section 40AB and Schedule 17A of the IRO;
- It does not claim deduction for distribution arising from a regulatory capital security;
- It is not a permanent establishment in Hong Kong of a non-Hong Kong resident person; and
- It is not required to submit any supplementary form.
A partnership must satisfy the conditions above. In addition,
- It cannot have more than 6 partners during the basis period for that year of assessment (including those partners who have retired); and
- All of its partners are individuals.
If the corporation/partnership does not satisfy any one of the above conditions, it cannot use the Internet filing service. Please file the return in paper form.
eTAX provides the following three services relating to the Internet filing of Profits Tax Return:
- Completion of Profits Tax Return (for filling in return information);
- Submission of Profits Tax Return (for signing and submission of return that meets the criteria for Internet filing); and
- Viewing of Profits Tax Return (for viewing return submitted through the Internet).
Any person appointed by the corporation/business can use the "Completion of Profits Tax Return" service to prepare the Profits Tax Return of the corporation/business, irrespective of whether he has an eTAX Account or not.
Please get ready the Profits Tax Return and the supporting documents referred to in the notice on page 1 of the Profits Tax Return before using this service.
To use the service, go to eTAX www.gov.hk/etax and select the "Completion of Profits Tax Return" service from the menu of "Services Available under eTAX". Then, follow the steps below:
Step 1: Read Important Notes
Step 2: Enter File No. and Return Identification No. (RIN)
Step 3: Complete Return
Step 4: Add Notes to Filer
Step 5: Save Draft Return for Submission
- A company will have a different "Return Identification Number (RIN)" for the return of each year of assessment. Therefore, the "Return Identification Number (RIN)" printed on the return of the relevant year of assessment must be used when using the Internet filing service. If no "Return Identification Number (RIN)" is printed on the return, the return cannot be filed through the Internet and has to be filed in paper form.
- If you need to leave this service before you have finished "Step 3: Complete Return" and "Step 4: Add Notes to Filer", you can download and save the input data to computer or other storage device by clicking on the [Save] button at the bottom of any page of "Step 3" or "Step 4". You can return to this service to retrieve the information saved and continue to complete the return later.
- After you have checked that the information shown on the draft return in "Step 5: Save Draft Return for Submission" is in order, please click on the [Save for Submission] button at the bottom to store the draft return in computer or other storage device for submission later. The person who is responsible for submitting the return can then use the "Submission of Profits Tax Return" service to retrieve the draft return file for verification, signing and submission of the Profits Tax Return.
If you wish to know more about the "Completion of Profits Tax Return" service, please click here to view Online Demo.
Only an eTAX Account holder in the following capacity can use the "Submission of Profits Tax Return" service to sign and submit Profits Tax Return that meets the criteria for Internet filing:
- the Director, Secretary, Manager or Investment Manager (only applicable to a corporation that is an open-ended fund company) of the corporation;
- the precedent partner of the partnership; or
- the sole proprietor of the business (only if it was changed from a partnership to a sole proprietorship during the basis period for the year of assessment).
To open an eTAX Account, please click Apply for eTAX Password.
The draft return must have been prepared using the "Completion of Profits Tax Return" service before the return filer uses this service to submit the return.
To use the service, the return filer should go to eTAX www.gov.hk/etax and select the "Submission of Profits Tax Return" service from the menu of "Services Available under eTAX". Then, log on to his eTAX Account and follow the steps below:
Step 1: Read Important Notes
Step 2: Open Draft Return
Step 3: Read Notes by Preparer
Step 4: Select Designation of Filer
Step 5: Sign and Submit
Step 6: Acknowledgement
- If any error or omission is found on the information in the simulated return displayed in "Step 5", please click on the [Amend] button at the bottom of the simulated return to go to the "Completion of Profits Tax Return" service to correct the return information.
- The return filer will need to use his eTAX Password, MyGovHK Password, recognized personal digital certificate or "iAM Smart" account with digital signing function to sign the return.
- For the purpose of filing tax returns under the Inland Revenue Ordinance, either digital signature or password is accepted as an alternative to hand-written signature. A person who files Profits Tax Return by using his/her password will be treated as having signed the return and is accountable for the accuracy of the information submitted.
- If any error is discovered after submission of the return, please give a duly signed written notice to the Commissioner of Inland Revenue with particulars including your name, capacity, name of the corporation/business, file number, the relevant year of assessment and details of the amendment or supplement. Please do not use a paper Profits Tax Return for this purpose.
If you wish to know more about the "Submission of Profits Tax Return" service, please click here to view Online Demo.
Only the return filer can access this service.
The return filer can use this service to view, save and print the Profits Tax Return as soon as he has submitted it through the Internet. The time limit is 1 month from the date of submission. The return filer is advised to print a copy or save it for record purposes. A return that is saved in computer or other storage device can be viewed after connecting the computer to the Internet.
- Click here to read the frequently asked questions and answers about filing of Profits Tax Return through the Internet.