background image
14.5. Interest and Penalties

Late Tax Payment

Late tax payments that are less than 6 months overdue are subject to a 5% non-deductible surcharge. Payments that are overdue by more than 6 months are subject to a 10% non-deductible surcharge.

Incorrect Tax Return

Submission of an incorrect tax return without reasonable excuse carries a fine of up to HKD 10,000 plus up to 300% of tax underpaid.

In more serious cases of tax evasion, where a field audit or investigation takes place, fines of up to HKD 50,000 plus up to 300% of tax underpaid can be incurred. In addition, in cases of criminal prosecution, serious violations can result in imprisonment for up to 3 years.

Business Registration Renewal

Businesses which fail to renew the business registration may be subject to a fine of up to HKD 5,000 and to imprisonment of up to a year. Renewal required within one month of expiration, either annually or every three years.

Companies Registry Annual Return

Incorporated companies which fail to file their annual return with the Companies Registry are subject to the following fines:

More than 42 days but not more than 3 months HKD $870
More than 3 Months but not more than 6 months HKD $1,740
More than 6 Months but not more than 9 months HKD $2,610
More than 9 Months HKD $3,480

In addition companies that fail to file their companies registry annual return on time may be subject to prosecution which can result in fines of up to HKD$ 50,000 and one year imprisonment.