Companies in Hong Kong sometimes need to apply for an extension of time to file taxes to observe the deadline set by the Inland Revenue Department. The process is quite easy but should be duly substantiated and filed within the prescribed timeline.
An application in writing should be forwarded to the IRD, stating the reason for the delay. Generally accepted reasons will include unavoidable circumstances, such as disruption in regular business operations and the requirement of more time in the preparation of financial statements. The request should be made sufficiently in advance of the due date for filing to show good faith.
Companies often engage tax representatives, like accountants or tax advisors, to act for them in these matters. Companies involved in the IRD Block Extension Scheme are automatically extended based on an agreement with the representative and are categorized by the complexity of the tax case.
In case of approval, the IRD will notify the new due date to the company. It is then very important to meet the extended deadline to avoid any penalty or interest charges.
One IBC Hong Kong can help with professional advice on how to handle a tax filing extension and maintain compliance with Hong Kong’s tax laws. Support in this direction will help every business go through the extension process efficiently, with minimal risks, and let the company focus on its business.