Hong Kong Tax Alert 2 April 2013

Hong Kong Tax Alert: 2 April 2013

2012/13 profits tax filing season has commenced

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This tax alert draws your attention to profits tax returns, and matters that you should be aware of when claiming tax deductions for a recharge of share-based payments.

The Inland Revenue Department (IRD) has now issued bulk profits tax returns to taxpayers for the year of assessment 2012/13. Taxpayers who have received these returns should note the relevant tax filing due dates. If a taxpayer has not received a return, they should nonetheless note their statutory obligation to inform the IRD if they are chargeable to tax.

The profits tax filing season for the year of assessment 2012/13 has commenced

The tax filing season for the fiscal year ended 31 March 2013 (i.e., year of assessment 2012/13) commenced this year on 2 April with the IRD’s bulk issuance of the relevant profits tax returns on that date. As a matter of practice, the IRD issues returns in bulk annually in early April to corporations or partnerships that are likely to be chargeable to tax or that meet other conditions.

Returns are normally due for filing within one month from their date of issue. However, the IRD has for many years operated a block extension scheme whereby the filing deadline can be extended in instances where a taxpayer is professionally represented.

Under the 2012/13 block extension scheme, the filing dates for the bulk returns issued on 2 April 2013 can be extended as follows:

For taxpayers with accounting dates falling between

Extended due date

1 April 2012 – 30 November 2012
(Accounting date code “N”)

No extension, return due on the normal due date of 2 May 2013 (Thursday)

1 December 2012 – 31 December 2012
(Accounting date code “D”)

15 August 2013 (Thursday)

1 January 2013 – 31 March 2013 – with taxable profits for the year
(Accounting date code “M”)

15 November 2013 (Friday)

1 January 2013 – 31 March 2013 - with tax losses for the year

4 February 2014 (Tuesday)