Section 14 of the Inland Revenue Ordinance levies profits tax on every person carrying on a trade, profession or business in Hong Kong in respect of his assessable profits derived from Hong Kong.  Section 2 of the Inland Revenue Ordinance defines “person” to include a corporation. Under this section, it further explains that a corporation means any company which is either incorporated or registered under any enactment or charter in force in Hong Kong or elsewhere but does not include a co-operative society or a trade union.

There is no distinction made between residents and non-residents. A resident may derive profits from abroad without suffering tax; conversely, a non-resident may suffer tax on profits arising in Hong Kong. The question of whether a business is carried on in Hong Kong and whether profits are derived from Hong Kong is largely one of fact.

A corporation carrying on a business in Hong Kong has to file a Profits Tax Return (tax return Form BIR51) for every year of assessment. The tax return must be supported by the following (except small corporation):

(1)	a certified copy of detailed Statement of Financial Position/Balance Sheet and Statement of Comprehensive Income/Profits and Loss Account;
(2)	a certified copy of Auditor’s Report;
(3)	a tax computation showing how the Assessable Profits are computed from the accounting profits;
(4)	schedules of the following items (where applicable):

• capital expenditure incurred, capital assets sold, depreciation charged in the accounts and assets not in use at the end of the basis period;
• details of expenditure incurred on, and disposal proceeds of, scientific research;
• details of expenditure incurred on refurbishment of buildings --- the location and the usage of building during the year;
• details of expenditure incurred on, and disposal proceeds of, environmental protection machinery, environment-friendly vehicles and environmental protection installation;
• details of reserves and provisions, showing transfers to and from the related accounts;
• details of any service / management fee received including name and address of each payer;
• details of interest paid or payable, including name and address of the lender, relationship with your side, any security to the lender, and the usage of the loan;
• details of income and expenses claimed to be with a non-Hong Kong source;
• details showing the name and address of payments involving contractor / sub-contractor fees, management fees, commission, legal and other professional fees, and hiring charges for the use or right to use movable property in Hong Kong;
• details of bad debt provisions and write-offs;
• details of change in method of valuation of stock;
• details of rent payments including name and address of the landlord, the property location, the total rent paid and the period covered;
• details of extraordinary gains and losses;
• details of cessation of business, including written agreement for letting or sale of the business, sums received or paid after cessation, name(s) of the person now occupying that premises;
• a computation of deemed assessable profits of non-resident person, special purpose vehicle and open-ended fund company;
• details of stock option or stock award obligations;
• details of deduction claimed for approved charitable donations showing full name of charitable institution and the respective amount;
• for an open-ended fund company with sub-funds structure, a computation of the Assessable Profits or Adjusted Loss of each sub-fund.

With effect from 1 April 2019, 10 supplementary forms to Profits Tax Returns (BIRS1 to BIRS10) are introduced for corporations to report information on preferential regimes and tax incentives. Below are the supplementary forms (if applicable):

• Supplementary Form S1 – Person electing for two-tiered profits tax rates
• Supplementary Form S2 – Transfer pricing
• Supplementary Form S3 – Expenditure on research & development
• Supplementary Form S4 – Expenditure on energy efficient building installation
• Supplementary Form S5 – Ship-owner
• Supplementary Form S6 – Professional reinsurer
• Supplementary Form S7 – Authorized captive insurer
• Supplementary Form S8 – Qualifying corporate treasury centre
• Supplementary Form S9 – Qualifying aircraft lessor
• Supplementary Form S10 – Qualifying aircraft leasing manager

Source：Hong Kong Inland Revenue Department’s website

- https://www.ird.gov.hk/eng/tax/bus_pft.htm
- https://www.ird.gov.hk/eng/pdf/e51notes.pdf