Major Changes in 2022/23 Paper Profits Tax Return [BIR51, BIR52 & BIR54]

BIR51, BIR52 or BIR54 must be submitted together with the Control List for Supplementary Form and Other Form Uploaded (IR1477) (if applicable) to the Department.

The following Items are added/amended in the Profits Tax Returns this year: 

• Item 3.4.2 of BIR51 is amended to cover taxpayers carrying on business as a qualifying ship agent, a qualifying ship manager or a qualifying ship broker chargeable to tax at concessionary tax rate under section 14ZD/14ZM/14ZV of the Inland Revenue Ordinance.

• Items 7.10 to 7.10.2 of BIR51 are added to indicate whether the taxpayer is an insurance corporation adopting the risk-based capital (“RBC”) regime to determine capital requirements for the basis period; state the amount of the one-off adjustment arising from the adoption of the RBC regime; and (subject to the enactment and operation of the relevant legislation) indicate the election to treat the one-off adjustment arising from the adoption of the RBC regime as income or loss by 5 equal amounts for the relevant year of assessment and the next succeeding 4 years of assessment.

• Items 7.11 and 7.11.1 of BIR51 and Items 7.7 and 7.7.1 of BIR52 are added to indicate whether the taxpayer is an eligible family-owned investment holding vehicle managed by an eligible single family office in Hong Kong; and (subject to the enactment and operation of the relevant legislation) indicate the election to have the preferential treatment applied to the related profits. Please remind your client to complete Form IR1479, if applicable, and submit it electronically via the eTAX.

• Item 7.12 of BIR51 and Item 7.8 of BIR52 are added to indicate whether the taxpayer is a family-owned special purpose entity.

• Item 7.13 of BIR51 and Item 7.9 of BIR52 are added to indicate whether the taxpayer derived and/or received any specified foreign-sourced income during the basis period. Please remind your client to complete Form IR1478, if applicable, and submit it electronically via the eTAX.

• Part 9 of BIR51 and BIR52 and Items 2.4.2 and 7.4 of BIR54 are amended to indicate the relevant supplementary forms uploaded via the eTAX.