Completion of Profits Tax Returns, Supplementary Forms and Other Forms

Yes. It does not refer to the basis period of the company.

Yes. For simplicity sake, you need not spend effort to ascertain the accounting date of the non-resident person. However, if the non-resident person wants to claim the lower tax rate pursuant to the two-tiered profits tax rates or the respective double taxation agreement/arrangement, the basis period must refer to that of the non-resident person.

Yes. You should use this basis period consistently. However, if the non-resident person wants to claim the lower tax rate pursuant to the two-tiered profits tax rates or the respective double taxation agreement/arrangement, the basis period must refer to that of the non-resident person.

Yes. You should explain in a separate sheet why a different basis period is used this year.

With effect from 1 April 2022, a taxpayer may engage a service provider to furnish Profits Tax return for or on behalf of the taxpayer, irrespective of the mode in which a return is furnished (that is, paper or electronic).

In furnishing BIR54, the service provider must obtain a written confirmation, "Confirmation for Engagement of Service Provider to Furnish Return" (IR1476), from the company stating that the information contained in the return is correct and complete to the best of the company’s knowledge and belief. The IR1476 should be completed and signed by the company. The duly signed IR1476 should be filed together with BIR54.

For the years of assessment commencing on or after 1 April 2018, if an election is made on behalf of the non-resident person for two-tiered rates, you are required to state that for the year it had no connected entity carrying on a trade, profession or business in Hong Kong or no such connected entity elects to be so chargeable. To elect for two-tiered rates, tick “yes“ in Item 2.3 and provide confirmations, country code* of the jurisdiction of tax residence and tax identification number of the non-resident person in Item 2.4 and a complete list of the connected entities carrying on a trade, profession or business in Hong Kong in supplementary form (S1). You should note that the Assessable Profits of the non-resident person chargeable at the lower rate for the year should not exceed $2 million in total, including the Assessable Profits assessed in other agents’ names. For details, please refer to the Q & A for Two-tiered Profits Tax Rates Regime in this web site.

Section 80(2) of the Inland Revenue Ordinance provides that a person commits an offence if the person, without reasonable excuse, gives any incorrect information in relation to any matter or thing affecting his own liability (or the liability of any other person) to tax.

Country code of ISO 3166-1 Alpha 2 is a two-letter country code defined in ISO 3166-1, part of the ISO 3166 standard published by International Organization for Standardization (ISO), to represent a country. For the up-to-date list of country codes, you may refer to ISO´s web site (www.iso.org/iso-3166-country-codes.html). You should provide the jurisdiction of tax residence and tax identification number of non-resident person on a separate sheet of paper if the space is insufficient.

TIN is a unique identifier assigned by tax authority of a jurisdiction to a person (individual or entity) for the purposes of administering the jurisdiction´s tax laws. You are advised to ask the non-resident person to provide all the required information in Items 2.4.1 to 2.4.4 of BIR54. If you do not have such information, the non-resident person will not be charged at two-tiered rates. For more information about the current rules in relation to the issuance, structure, use and validity of each jurisdiction's TIN, please see the online support for the implementation of automatic exchange of information in tax matters in OECD's web site (www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/).

No. You only have to complete the corresponding supplementary forms if you fall within the descriptions in Items 2.4.2 and 7.4 of BIR54. For further details, please refer to the FAQ for supplementary forms in this web site.

The Profits Tax return does not enclose with the supplementary forms. You need to download the relevant supplementary forms from Department's web site www.ird.gov.hk/e_pfr for completion.

The supplementary forms are part of the tax return that should be filed together with the Profits Tax return. Please refer to FAQ13 for details on submission of supplementary forms.

All required supplementary forms must be submitted electronically through the eTAX irrespective of the filing mode of Profits Tax return for any year of assessment from 2018/19 to 2024/25 (both inclusive).  If you are required to file any supplementary form, you must download the relevant supplementary form and fill in the form electronically. After completion, you must export the filled form to XML file and upload the XML file via the eTAX services under GovHK for submission.  After successful uploading of the XML file, you have to print and sign a paper Control List for Supplementary Form and Other Form (IR1477) (containing details of XML files uploaded and QR code) generated by the eTAX services for submission together with the Profits Tax return.