Completion of Profits Tax Returns and Supplementary Forms

Special Points to Note

1.	Financial Statements Prepared in Foreign Currencies

	All amounts must be shown in Hong Kong dollars (excluding cents).

	If the financial statements are prepared in foreign currencies, convert the amounts into Hong Kong dollars before completion and state the conversion rate used.

	The exchange rate of the major currencies are available here.

2.	Assessable Profits or Adjusted Loss

	The Assessable Profits or Adjusted Loss must be the figure before adjustment of any loss brought forward from prior years.

3.	Emoluments, interest on capital etc. paid to the proprietor (or spouse) / any partner (or spouse) from the business

	The information must be provided in the appropriate items.

	(Read item (2)(a) in Part 1 of Section G of Notes and Instructions - Form BIR52. Such amount must be adjusted)

4.	Personal Particulars of Proprietor or Partners and Allocation of Profits / (Loss)

	When filling in the names of the proprietor or partners, enter the surname first.

	Election for Personal Assessment
	For the proprietor or partner who wishes to elect for personal assessment, Item 6.2 in BIR52 must be completed with a "tick". Election for personal assessment by the proprietor or partner should be made in Tax Return - Individuals (BIR60). If the proprietor or partner who is required to complete a BIR60 but does not make a valid election in the BIR60, the election made in Item 6.2 in BIR52 will be disregarded and profits tax demand note may be issued if it is a profits case.
	The allocation of assessable profits or adjusted loss among partners (including corporate partners or non-corporate partners of limited partnership fund) should be entered in Item 6.2 in BIR52. This is required, even if the proprietor or partner does not elect for Personal Assessment. The total allocation of assessable profits or adjusted loss must be equal to the amount in Item 1.1 or 1.2 in BIR52.

5.	Basis period

	You should tick the box "Yes" only if there is a change of accounting date, that is, financial statements are made up to a date different from that of last year (for example, financial statements for last year were made up to 31 March but financial statements for this year were made up to 30 June). Please state on a separate sheet the reasons for the change of accounting date.

6.	Financial Data

	If any items are not shown in the financial statements, simply insert "0". There should be no amendment to any of the items stated. For example, do not change "Purchases" to "Cost of Goods Sold".

7.	Interest Expense

	Details of the interest paid or payable, including the name and address of the lender, his relationship with the taxpayer, the purpose for which the loan was obtained, any security given to the lender and the specific condition under section 16(2) of the IRO which the taxpayer relies on for the claim for deduction must be given on a separate sheet.

	Hire purchase interest and mortgage loan interest must be included as part of the interest expenses paid.

	(Read FAQ - Q161, Q162 and Q163 and DIPN 13A: Profits Tax - Deductibility of Interest Expenses (issued in December 2004) for further details)

8.	Hong Kong Standard Industrial Classification Code

	The 6-digit industry code of the Hong Kong Standard Industrial Classification (version 2.0) maintained by the Census and Statistics Department must be stated (Item 4.3 of Profits Tax Return – Corporations (BIR51) and Item 3.3 of Profits Tax Return – Persons other than Corporations (BIR52) in paper form). Please refer to the Census and Statistics Department’s website (https://www.censtatd.gov.hk/en/page_698.html) for the index of industry codes. If corporations and partnership businesses engage in more than one business activity in the basis period, the industry code of their principal business activity should be stated. If they do not have any business activity during the basis period, the industry code should be stated as “000000”.

Format specifications for Supporting Documents accompanying Profits Tax Return and Control List (IR1477)

FAQ [BIR51 & BIR52]

FAQ [BIR54]

FAQ [Supplementary Form]

Average Exchange Rates of Major Foreign Currencies

Rates of Depreciation

See Appendix A to C of DIPN 7 (Revised): Machinery and Plant - Depreciation Allowances.