How Taxes Work in Hong Kong: Offshore Claims and Deadlines

Hong Kong’s tax system looks simple on the surface: low rates, no capital gains tax, and the possibility of offshore tax exemption. But once deadlines, audits, and offshore claims come into play, that simplicity can disappear quickly.

In this conversation, Alessandro sits down with Henry, Head of Tax at ONC Lawyers, to unpack how Hong Kong tax really works for business owners. They talk through what actually happens if you miss a filing, why ignoring the IRD is risky even when your company has no profit, and how offshore claims are assessed in practice rather than in theory.

The discussion also clears up common misconceptions around the “0% tax” idea, explains when an offshore claim makes sense financially, and highlights why planning deadlines and year-end dates early can save you trouble later on. It’s a grounded, experience-based look at Hong Kong tax compliance from someone who deals with it daily.

Key Takeaways

• What happens if you miss a Hong Kong profit tax filing deadline
• How penalties and estimated assessments are applied by the IRD
• When your first profit tax return is issued and how much time you really have
• Why audits are mandatory in Hong Kong, even for small companies
• How Hong Kong’s two-tier profits tax system works in practice
• What an offshore tax claim involves and why it is never automatic
• When it makes sense to apply for offshore status versus paying the standard tax
• How losses, expenses, and carry-forward rules are treated in Hong Kong