Hong Kong Financial Year-End Date: Complete Guide for New Companies

What Is a Financial Year and How to Choose the Year-End Date for a Hong Kong Company

Choosing your company's financial year-end is one of the most important decisions made at the start of operations. This choice determines the audit timeline and the deadlines for filing tax returns. A well-chosen year-end date provides sufficient time to prepare financial statements and significantly reduces administrative pressure on the company.

What Is a Financial Year?

A financial year — also referred to as an accounting period — is the 12-month period for which a company prepares its annual financial statements. For a newly incorporated company, the first financial year begins on the date of incorporation and ends on the chosen financial year-end date.

It is important to distinguish the financial year from the Inland Revenue Department's (IRD) tax year. The IRD tax year runs from 1 April to 31 March. The financial year-end determines the audit schedule and the deadline for filing the Profits Tax Return (PTR), while the IRD uses its own fixed tax year for statistical purposes and taxpayer notifications.

Key Compliance Deadlines Linked to the Financial Year-End

According to the IRD's filing deadline schedule, the PTR submission deadline depends on the financial year-end date. The IRD assigns three deadline codes:

Code N — year-end between 1 April and 30 November. Filing deadline: 2 May of the following year. No extension is granted.
Code D — year-end on 31 December. Filing deadline: extendable to 17 August of the following year upon application by a tax representative.
Code M — year-end between 1 January and 31 March. Standard deadline: 16 November of the same year (for profitable companies); extendable to 16 December, or to 1 February of the following year for loss-making cases — both upon application by a tax representative.

If your company has received a court summons from the IRD for late filing, read our guide on how to resolve it

The First Financial Year: Maximum 18 Months

A newly incorporated company typically receives its first PTR approximately 18 months after the date of incorporation. This means the first financial year may be longer than 12 months, but cannot exceed 18 months. This grace period allows directors to align the year-end with business cycles rather than the incorporation date. The filing deadline is 3 months from the date of issue, and extensions are generally not granted for the first filing. This makes early planning critical: a poorly chosen year-end date may force the company to complete its first audit just a few months after incorporation.

Why March 31 and December 31 Are the Preferred Year-End Dates

Although a Hong Kong company may choose any date as its financial year-end — typically the last day of a month — the vast majority of companies choose either 31 March or 31 December.

31 March — aligned with the Hong Kong government's financial year

The Hong Kong government's financial year runs from 1 April to 31 March, and the IRD's tax year follows the same cycle. By choosing 31 March as the year-end, a company synchronises its reporting period with the government's tax year. This alignment simplifies tax coordination. Companies with a 31 March year-end also benefit from the extended PTR filing deadline described above — giving auditors and finance teams valuable additional time to complete the audit and file the return without rushing.

31 December — aligned with the calendar year

Choosing 31 December as the financial year-end means the company's reporting period coincides with the calendar year. This is particularly advantageous for companies with overseas parent entities or those seeking international investors, as it simplifies the comparison of financial statements across global subsidiaries. Companies with a 31 December year-end also benefit from an extended filing deadline.

Practical Examples: Right and Wrong Year-End Choices

Example 1: Company incorporated on 15 May 2024

Choice: 31 March 2026 as the financial year-end.
First financial year: 15 May 2024 – 31 March 2026 — approximately 22 months.
Result: Not permitted. The first financial year cannot exceed 18 months. This company would need to choose a year-end within 18 months of incorporation — for example, 31 March 2025 (a 10-month first year) or 31 December 2025 (an 18-month first year).

Example 2: Company incorporated on 1 July 2024

Choice: 31 March 2025 as the financial year-end.
First financial year: 1 July 2024 – 31 March 2025 — exactly 9 months, well within the 18-month limit.
First PTR: The IRD will issue the first PTR approximately 18 months after incorporation (around January 2026). With a 31 March year-end, the extended filing deadline will apply — November 2026 for profitable companies, or February 2027 for loss-making cases — providing ample time for preparation and submission.

Example 3: Subsidiary of a mainland China parent company

Parent company year-end: 31 December (calendar year).
Hong Kong subsidiary incorporated: 20 October 2025.
Choice: 31 December 2026 as the financial year-end.
First financial year: 20 October 2025 – 31 December 2026 — 14 months, within the 18-month limit.
Group reporting benefit: The Hong Kong subsidiary's financial year-end matches that of the parent company, enabling unified group reporting from the outset — without the need for additional consolidation work.

For a deeper look at how Hong Kong's tax system works, see our guide on the territorial tax principle in Hong Kong and Singapore

Frequently Asked Questions about Hong Kong Financial Year-End

What is a financial year-end date for a Hong Kong company?

The financial year-end date marks the close of a company's 12-month accounting period, for which annual financial statements are prepared. For a newly incorporated Hong Kong company, the first financial year begins on the date of incorporation and ends on the chosen year-end date. This date determines the audit schedule and the deadline for filing the Profits Tax Return (PTR) with the Inland Revenue Department (IRD).

Can a Hong Kong company choose any financial year-end date?

Yes, a Hong Kong company may choose any date as its financial year-end — typically the last day of a month. However, the most common choices are 31 March and 31 December, as both qualify for extended Profits Tax Return filing deadlines from the IRD. The key constraint for new companies is that the first financial year cannot exceed 18 months from the date of incorporation.

What are IRD filing deadline codes N, D, and M in Hong Kong?

The IRD assigns deadline codes based on a company's financial year-end date. Code N applies to year-ends between 1 April and 30 November, with a filing deadline of 2 May of the following year and no extension available. Code D applies to a 31 December year-end, with a deadline extendable to 17 August of the following year. Code M applies to year-ends between 1 January and 31 March, with a standard deadline of 16 November, extendable to 16 December or 1 February for loss-making companies — both requiring a tax representative to apply.

Why do most Hong Kong companies choose 31 March or 31 December as their year-end?

These two dates are preferred because both qualify for extended PTR filing deadlines. A 31 March year-end aligns with the Hong Kong government's own financial year (1 April – 31 March), simplifying tax coordination and giving auditors more time to prepare filings. A 31 December year-end matches the calendar year, which is advantageous for companies with overseas parent entities or international investors who require consolidated group reporting across jurisdictions.

How long can the first financial year of a Hong Kong company be?

The first financial year of a newly incorporated Hong Kong company can be shorter or longer than 12 months, but cannot exceed 18 months from the date of incorporation. This flexibility allows directors to align the year-end with a preferred reporting date rather than simply the incorporation date. The first Profits Tax Return is typically issued by the IRD approximately 18 months after incorporation, with a 3-month deadline to file — extensions are generally not granted for the first filing.

What happens if a company chooses a year-end that results in a first financial year longer than 18 months?

This is not permitted. If the chosen year-end date would create a first financial year exceeding 18 months from the incorporation date, the company must select an earlier year-end date. For example, a company incorporated on 15 May 2024 cannot choose 31 March 2026 as its first year-end (22 months), but could choose 31 March 2025 (10 months) or 31 December 2025 (18 months).

What is the difference between the financial year and the IRD tax year in Hong Kong?

A company's financial year is the 12-month accounting period it chooses for preparing its financial statements, and it can end on any date. The IRD tax year, by contrast, is a fixed government period running from 1 April to 31 March each year. The IRD uses its own tax year for statistical purposes and issuing taxpayer notifications, while a company's PTR filing deadline is determined by its own financial year-end date.

What are the risks of choosing the wrong financial year-end date?

Choosing an unsuitable year-end date can create significant administrative pressure. If the first financial year is very short, the company may need to complete its first audit just a few months after incorporation, leaving little time to gather records. Choosing a year-end under Code N (April–November) provides no filing extension, meaning the audit and tax return must be completed under a tighter deadline. Early planning and professional advice on year-end selection can prevent these issues.

Need help choosing the right financial year-end for your Hong Kong company?

Our accounting team advises on year-end selection, prepares financial statements, and handles IRD filings — so you stay compliant from day one.

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Hong Kong Financial Year-End: How to Choose the Right Date for Your Company