The Hong Kong Inland Revenue Department (IRD) has released a Circular Letter to Tax Representatives regarding the Block Extension Scheme for the Lodgement of 2023/24 Tax Returns. According to the letter, the Block Extension Scheme will be accessible to tax representatives.

Regarding Profits Tax Returns, the letter includes that the bulk issue of 2023/24 Profits Tax returns to corporations and partnership businesses, the files of which fall within the “active” category in the IRD, will take place on 2 April 2024. For taxpayers who are represented, the compliance date specified in the notice on page 1 of the 2023/24 Profits Tax return will be extended as follows:

Despite the above extensions, the IRD encourages filing as many returns as possible before the extended due dates. The Circular Letter also details additional extensions that may apply, such as a further extension to 31 January 2025 for “M” code clients who sustained allowable losses for the year of assessment 2023/24.

Where requests for the additional extensions are made, and a return is ultimately not filed electronically or assessable profits are reported, as the case may be, the IRD will consider penalty action if the request had been made without reasonable excuse. In such circumstances, the additional extension granted would be considered void, and the normal extension would apply.

The circular mentions any 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 in a timely manner, together with supporting evidence, must accompany the application.