According to Section 14 of the Inland Revenue Ordinance, profits tax shall be charged for 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 partnership.

The precedent partner is responsible to file a Hong Kong Profits Tax Return for Persons other than Corporations (BIR52). According to Section 2 of the Inland Revenue Ordinance, “precedent partner” means the partner who, of the active partners resident in Hong Kong is first named on the agreement of partnership; or if there is no agreement, is specified by name or initials singly or with precedence to the other partners in the usual name of the partnership; or is first named in any statutory statement of the names of the partners.

According to Section 56 of the Inland Revenue Ordinance, if the precedent partner fails to do any acts required by the Ordinance, every partner will be jointly and severally liable to do it.

The Profits Tax Return must be supported by the following (except small corporation):

(1)	a certified copy of Statement of Financial Position/Balance Sheet and Statement of Comprehensive Income/Profit and Loss Account for the basis period. Such certified copies should show the precedent partner has agreed the financial statements by signature.
(2)	schedules of the following items (where applicable):

• details of interest paid or payable, including the 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.
• reconciliation statements and other supporting schedules where necessary.
• details of expenditure incurred on, and disposal proceeds of, environment protection machinery, environment-friendly vehicles and environmental protection installation.
• list of newly acquired furniture, fixtures, equipment, plant, machinery, vehicles, building during the period covered including purchase date, purchase price and instalments paid if the item was acquired by hire purchase.
• details of expenditure incurred on, and disposal proceeds of, research and development.
• details of expenditure incurred on refurbishment of buildings – the location and the usage of building during the year.
• details of change in method of valuation of stock.
• summary of each capital account and each drawings account maintained in the books.
• details of rent payments including name and address of the landlord, the property location, the total rent paid, and the period covered.
• details of management fee paid to a related service company, including name, Business Registration Number and amount of the payee.
• details showing the name and address of payments involving contractor / sub-contractor fees, management fees, commission, royalties, 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 mandatory contributions made in respect of each partner during the period covered.
• details of cessation of business, including written agreement for letting or sale of the business, sums received or paid after cessation, present occupation of the partners.
• a computation of deemed assessable profits of non-resident person, special purpose vehicle, fund and special purpose entity.
• details of deduction claimed for approved charitable donations showing full name of charitable institution and the respective amount.

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. Being part of the return, BIRS1 to BIRS5 should be filed together with the Profits Tax Return for Persons other than Corporations (BIR52) by precedent partner. 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

Source：Hong Kong Inland Revenue Department’s website

- https://www.ird.gov.hk/eng/pdf/e52notes.pdf