Annual Return and Profits Tax Return are 2 separate mandatory filings for every active Hong Kong company. They go to different government bodies, cover different information, have different deadlines, and carry different consequences for non-filing.
Confusing the 2 is one of the most common errors among new Hong Kong company directors. This guide explains exactly what each is, who files it, when, and what happens if you miss the deadline. For the full annual compliance calendar, see our annual requirements guide. For a complete explanation of how profits tax is calculated, rates, and the offshore exemption, see our Hong Kong corporate tax guide.
Highlights of this article
- Annual Return (NAR1) is a Companies Registry filing that updates company details and confirms the company is still active. No financial figures are included.
- Profits Tax Return is an IRD filing that declares taxable income and is accompanied by audited financial statements.
- Annual Return deadline: within 42 days of the anniversary of incorporation.
- Profits Tax Return deadline: varies by accounting year-end, typically 1 April or 1 November for most companies.
- Non-filing of Annual Return: criminal offence, HKD 50,000 maximum fine.
- Non-filing of Profits Tax Return: civil and criminal penalties, HKD 50,000 fine and estimated assessment.
Side-by-side comparison
| Feature | Annual Return (NAR1) | Profits Tax Return (PTR) |
|---|---|---|
| Filing authority | Companies Registry | Inland Revenue Department (IRD) |
| Purpose | Confirm company status and registered details | Declare taxable profits and pay tax |
| Financial statements | Not included | Required (audited) |
| Frequency | Once per year | Once per year |
| Deadline | Within 42 days of incorporation anniversary | April 1 or November 1 (depending on year-end) |
| Filing fee | HKD 105 (online) / HKD 140 (paper) | No fee |
| Penalty for late/non-filing | HKD 50,000 fine | HKD 50,000 fine + estimated assessment + potential prosecution |
| Who files | Company or company secretary | Company or authorised tax representative |
Annual Return (NAR1)
What it is
The Annual Return is a statutory form submitted to the Companies Registry. It confirms the company's current registered details: company name, registered office address, type of company, share capital, list of current directors and shareholders, company secretary details, and whether any transfers of shares have occurred during the year.
The NAR1 does not contain any financial information. It has nothing to do with profits, revenue, or tax.
Who must file
Every private Hong Kong company incorporated under the Companies Ordinance must file an Annual Return once per year. There are no exemptions for dormant or inactive companies. Even a company with zero activity must file.
Deadline
Within 42 days of the anniversary of the date of incorporation. If a company was incorporated on 15 March 2023, its Annual Return is due by 26 April each year (15 March + 42 days).
How to file
Filed via the Companies Registry's e-Registry portal or in paper form. Most companies use their company secretary to prepare and submit the Annual Return as part of annual compliance services.
Filing fee:
- Online (e-Registry): HKD 105
- Paper: HKD 140
Consequences of non-filing
Failure to file the Annual Return is a criminal offence under the Companies Ordinance. Maximum fine: HKD 50,000 for the company plus HKD 1,000 per day of default for continuing offences. Directors of the company can also be personally liable.
Profits Tax Return (PTR)
What it is
The Profits Tax Return is submitted to the Inland Revenue Department. It declares the company's taxable income for the financial year and is accompanied by audited financial statements, a tax computation, and supporting schedules.
The PTR is how the IRD assesses the company's profits tax liability. Hong Kong profits tax rates: 8.25% on the first HKD 2 million of assessable profits, 16.5% on the remainder (for corporations). For the full tax calculation, see our profits tax guide.
Who must file
Every Hong Kong company that carries on a trade, profession, or business during the tax year must file a Profits Tax Return. The IRD issues the return to companies directly, typically on the first working day of April each year.
New companies receive their first Profits Tax Return approximately 18 months after incorporation.
Deadlines
The IRD issues Profits Tax Returns on 1 April each year. Deadlines depend on the company's accounting year-end:
| Accounting year-end | Filing deadline |
|---|---|
| 31 March | 1 August of the same year |
| 31 December | 1 April of the following year |
| Any other date | 1 November of the same calendar year |
Tax representatives (accounting firms) can apply for bulk extension, which typically extends deadlines by 1 to 4 months. Companies not using a tax representative must meet the standard deadlines.
What must be submitted with the PTR
- Completed Profits Tax Return form
- Audited financial statements (signed by a Hong Kong CPA)
- Tax computation (showing how taxable profit is derived from accounting profit)
- Supporting schedules (capital allowances, interest expense, donations, etc.)
The quality of your bookkeeping records determines how quickly and cheaply the audit is completed.
Consequences of non-filing
Non-filing or late filing of the Profits Tax Return:
- Automatic fine of up to HKD 50,000
- IRD issues an estimated assessment of profits tax based on its own assumptions, often set high
- Interest charged on unpaid tax from the due date
- Prosecution for wilful non-filing: up to 3 years imprisonment
Common points of confusion
"My company made no profit. Do I still need to file a Profits Tax Return?" Yes. Even a company with zero revenue and zero profit must file a Profits Tax Return if the IRD issues one. File a nil return with audited accounts showing no activity. Non-filing is an offence regardless of profit level.
"Can I file both returns myself?" The Annual Return can be self-filed via e-Registry. The Profits Tax Return requires audited financial statements signed by a Hong Kong CPA. That audit cannot be performed by the company itself. Most companies use a company secretary for the Annual Return and an accounting firm for the PTR.
"Do I need a company secretary just for the Annual Return?" A company secretary is not legally required to file the Annual Return. A director can do it. However, the company secretary is the professional responsible for corporate compliance in Hong Kong. Most companies bundle Annual Return filing with the company secretarial service package.
Air Corporate handles Annual Return filing and Profits Tax Return preparation for Hong Kong companies as part of our annual compliance package. Get started
