Tax Representatives’ Corner - 2024/25 Profits Tax Return

The 2024/25 Profits Tax Return, including forms BIR51, BIR52, and BIR54, has undergone substantial updates. This summary outlines key changes, filing procedures, and available resources to assist taxpayers during the 2024/25 tax year.

A significant modification involves the Block Extension Scheme, which allows businesses to extend the period for filing their profits tax returns for the 2024/25 tax year. The extension process requires businesses to submit a letter, complete registration procedures, and apply online using specific forms.

The completion of Profits Tax Returns and Supplementary Forms should adhere to specific format specifications, such as IR1477. Customized printing templates are available for BIR51 and BIR52. Additionally, FAQs are available for all forms and supplementary documents.

Taxpayers are advised to consider average exchange rates of major foreign currencies and rates of depreciation for accurate filings. For instance, the average exchange rate for USD is 1.00. The rates of depreciation can vary based on the asset's useful life.

Several specimen forms and guides are available for reference. These include specimen forms for the 2024/25 Paper Profits Tax Return ("BIR51, BIR52, and BIR54"), an IRD Taxonomy illustrated in Excel for the 2024 edition, and a guide on profits tax treatment under HKFRS 16. The tax department also provides information on annual meetings between the Inland Revenue Department and the Hong Kong Institute of Certified Public Accountants.

Key resources include guides on profits tax return - fair value accounting, the process of registering as a certified tax agent in the Mainland, and deducting share-based payments. The FAQ section also provides detailed coverage of share-based payment transactions.

This summary aims to provide a comprehensive overview of the 2024/25 Profits Tax Return, ensuring taxpayers are well-informed and compliant with the latest regulations and procedures.