The Hong Kong Inland Revenue Department (IRD) has released a Circular Letter to Tax Representatives on the Block Extension Scheme for the Lodgement of 2024/25 Tax Returns.
As in previous years, the letter confirms that the Block Extension Scheme will continue to be available to tax representatives. The term “tax representative” refers to a person authorised by a taxpayer to act on his behalf for the purposes of the Inland Revenue Ordinance.
Regarding Profits Tax Returns, the letter includes that the bulk issue of 2024/25 Profits Tax Returns to corporations and partnership businesses, the files of which fall within the “active” category in the Department, will take place on 1 April 2025.
For taxpayers that are represented, the compliance date specified in the notice on page 1 of the 2024/25 Profits Tax return will be extended as follows:
- Accounting Date 1 April 2024 to 30 November 2024 (Accounting Date Code “N”): No Extension
- Accounting Date 1 December 2024 to 31 December 2024 (Accounting Date Code “D”): Extended Due Date of 15 August 2025
- Accounting Date 1 January 2025 to 31 March 2025 (Accounting Date Code “M”): Extended Due Date of 17 November 2025
Despite the above extensions, the IRD encourages taxpayers to file as many returns as possible well before the extended due dates.
Periodic issues
For taxpayers who are issued returns periodically during the year (i.e., returns issued on a date other than 1 April 2025 and 2 April 2025), including those with departmental file number prefix 22, 23, 95 or 97, applications for extension must be made under separate schedules. The Department must receive the applications for extension within one month from the date of issue of the returns.
Further extension
To promote voluntary e-filing of Profit Tax Returns (including semi-electronic filing), the Department will grant a further one-month extension on application, subject to the condition that your client will electronically file the Profit Tax Return through the Internet.
Further extension for current year loss cases with “M” code accounts
An extended deadline has been granted until 2 February 2026 for “M” code taxpayers who incurred eligible losses during the 2024/25 assessment year. This further extension will be granted because the Profits Tax Return to be lodged should show an allowable loss.
Failure to meet the conditions for the further extension applied for
Where a request for the e-filing extension has been lodged but subsequently a paper return is filed, or where a request for the further extension applicable to loss cases with “M” code accounts has been lodged but assessable profits are reported in the return subsequently filed, the Department would consider instituting penalty action if the request for the further extension had been made without reasonable excuse. In these situations, the additional extension granted will be deemed invalid, and the standard extension will take effect instead.
Requests for extension beyond the extended due dates
A further extension of time beyond that mentioned above will be granted only in the most exceptional circumstances. Any request for such extension should be made in writing at least 14 days in advance of the relevant expiration date of the block extension.
An explanation of why lodgement cannot be made promptly, together with supporting evidence, must accompany the application. Tax representatives should not assume that any further extension will be granted. Out of time requests will be refused, and telephone requests will not be entertained under any circumstances.
