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

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.

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

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.

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.

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

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