Does a dormant Hong Kong company still have tax obligations?
Yes. A dormant company must still file any profits tax return the IRD issues, though the IRD accepts returns without audited statements if the company has validly become dormant under the Companies Ordinance. Business registration continues until deregistration, and records must still be kept.
Filing. Becoming dormant does not by itself switch off the requirement to file a Profits Tax Return when the IRD issues one. The IRD may stop issuing returns to a business with no assessable profits, but when you receive one you must complete it. If the company is chargeable and has not received a return, you must notify the IRD within 4 months after the end of the basis period.
Audit exemption. Under section 5 of the Companies Ordinance a private company (other than a bank, insurer, licensed securities firm and similar regulated companies) can pass a special resolution declaring itself dormant and deliver it to the Registrar. It is then exempt from audited financial statements under section 447, and the IRD says it will accept returns from such dormant companies without audited financial statements. A company that has not formally become dormant remains subject to the normal audit requirement.
Other ongoing duties
- Business registration fee and levy continue until the company is dissolved or deregistered.
- A company that has not formally become dormant must still deliver its annual return to the Companies Registry. A formally dormant company is exempt from the annual return (section 663) until it enters an accounting transaction.
- Keep records for at least 7 years.
- If the company has no business at all, state industry code 000000 on the return.
If you do not need the company, consider deregistration (see the separate answer), which needs an IRD notice of no objection.
Legal basis
- Inland Revenue Ordinance (Cap. 112), s.51
- Companies Ordinance (Cap. 622), ss.5, 447, 663
Sources
Applies to YA 2025/26 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- What must I file when an employee resigns or leaves Hong Kong (IR56F and IR56G)?File IR56F at least 1 month before an employee's employment ends. File IR56G at least 1 month before an employee is due to leave Hong Kong for more than a month. After IR56G, do not pay money or money's worth to that employee for one month from the notice without the Commissioner's written consent.
- When will a new Hong Kong company receive its first profits tax return?The IRD generally issues the first Profits Tax Return about 18 months after the date of incorporation. A first-time recipient has 3 months from issue to file. If you are chargeable to tax and receive nothing, you must notify the IRD in writing within 4 months after the end of the basis period.
- What is the filing deadline for the Hong Kong profits tax return?The due date is printed on page 1 of the return, normally one month from issue. First-time recipients get 3 months, and e-filers under the e-notice get 2 months. Represented taxpayers usually get later dates under the Block Extension Scheme, depending on the accounting year-end.
- How does the Block Extension Scheme work for profits tax returns (N, D and M codes)?With a tax representative, the due date depends on your accounting year-end code. For 2025/26: N code no extension; D code (December) 31 August 2026 on paper, 2 October 2026 if e-filed; M code (1 January to 31 March) 30 November 2026 on paper, 30 December 2026 if e-filed. The D and M dates were later extended from 17 August and 16 November.
- Can I e-file my Hong Kong profits tax return, and is it compulsory?E-filing is optional for most businesses and compulsory only for large multinational group members (Part 4AA entities) from year of assessment 2025/26. Voluntary e-filers can get a further one-month extension. Supporting documents are submitted in iXBRL format when filing electronically.