What are the penalties for filing a Hong Kong profits tax return late?
Late filing can lead to prosecution under section 80 or additional tax under section 82A, up to three times the tax undercharged. In the IRD's guidance, a first offence is usually penalised at about 10% of the tax undercharged, or 20% if the return is filed after two or more estimated assessments. Repeat offences cost more.
Legal penalties. Without a reasonable excuse, failing to file a return in time or to notify chargeability can lead to:
- Prosecution under section 80(2): a fine of HK$10,000 plus a further fine of up to three times the tax undercharged.
- Additional tax under section 82A instead of prosecution: up to three times the tax undercharged.
Policy scale for profits tax (no field audit). The IRD's penalty policy uses these starting points, adjusted for the facts:
| Offence | Return filed late | Filed after two or more estimated assessments |
|---|---|---|
| First | 10% of tax undercharged | 20% |
| Second within 5 years | 20% | 30% |
| Third or more within 5 years | 35% | 50% |
Factors include length of delay, the amount of tax, the reasons and any remedial steps. The percentages are general guidance only.
Other consequences. The IRD can issue estimated assessments. A return also may be treated as invalid if not accompanied by the required documents.
To reduce risk
- Use the Block Extension Scheme through a tax representative.
- File on time even if the accounts are incomplete, or ask for an extension in writing at least 14 days before the due date.
A delay in an extension request is not a defence by itself.
Legal basis
- Inland Revenue Ordinance (Cap. 112), s.80
- Inland Revenue Ordinance (Cap. 112), s.82A
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
- How long do I have to object to a Hong Kong tax assessment?One month from the date of the notice of assessment. The notice of objection must be in writing and state the grounds precisely. The IRD can extend the time if you were prevented by absence from Hong Kong, sickness or other reasonable cause. If the objection fails you can appeal to the Board of Review, also within one month.
- 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.
- What happens when the IRD questions my offshore profits claim?The IRD assessor has power to ask for full information on any matter affecting tax liability, including detailed questions about how a transaction was carried out. You should respond with documents, not assertions. If the claim is rejected you can object within one month, and wrongly claiming offshore status can lead to additional tax.
- What is the deadline for the employer's return (BIR56A and IR56B) in Hong Kong?The IRD normally issues the Employer's Return (BIR56A) on the first working day of April, and you must file it within one month of issue together with a Form IR56B for each employee. For the year ended 31 March 2026 the forms were issued on 1 April 2026. Employers must keep payroll records for at least 7 years.