Major Changes in 2023/24 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 paper Profits Tax Returns this year: 

• Item 3.2 of BIR51 and item 2.2 of BIR52 are amended to indicate whether the taxpayer had deemed assessable profits under section 22 (in relation to assessable profits of family-owned investment holding vehicles) and/or section 23 (in relation to assessable profits of family-owned special purpose entities) of Schedule 16E to the Inland Revenue Ordinance.
• Item 7.11 of BIR51 and item 7.7 of BIR52 are amended to indicate whether the taxpayer is a family-owned special purpose entity in which an eligible family-owned investment holding vehicle has beneficial interest. Please remind your client to complete Item 10.10, if applicable.
• Item 7.12 of BIR51 is added to indicate whether the taxpayer is an eligible family office of a family and provide the information required in the Notes and Instructions to Form BIR51.
• Item 7.13 of BIR51 and item 7.8 of BIR52 are amended to indicate whether the taxpayer, as a member of a multinational enterprise group, derived and/or received any specified foreign-sourced income during the basis period. If applicable, please remind your client to complete Form IR1478 and submit it electronically via the eTAX.
• Item 7.14 of BIR51 and item 7.9 of BIR52 are added to indicate whether the taxpayer wishes to claim profits tax concessions for profits sourced in Hong Kong from eligible intellectual property income (subject to the enactment and operation of the relevant legislation). If applicable, please remind your client to complete Form IR1482 and submit it electronically via the eTAX.
• Item 9.1 to 9.19 of BIR51 and Item 9.1 to 9.7 of BIR52 are amended to indicate the relevant supplementary forms (S1 to S18 and S20 for BIR51 or S1 to S5, S15 and S20 for BIR52) uploaded via the eTAX.
• Item 10.4 of BIR51 and BIR52 are added to state the amount of gains or profits from disposal of qualifying equity interests excluded from the Assessable Profits or Adjusted Loss stated in Part 1. If applicable, please remind your client to complete Form IR1481 and submit it electronically via the eTAX.
• Item 10.10 of BIR51 and BIR52 are added to state the amount of profits earned by a family-owned special purpose entity from transactions specified in section 16(3) of Schedule 16E to the Inland Revenue Ordinance chargeable at concessionary tax rate.
• Item 12.23 of BIR51 and Item 11.21 of BIR52 are added to state the total value of assets.
• Item 6.1 of BIR52 is amended to state the particulars of the precedent partner in the first row. The precedent partner should be the person who signs on the return unless the return is signed by a service provider.