Choosing the right financial year-end is an important decision for businesses operating in Hong Kong. Whether you're setting up a new company, adjusting your reporting cycle, or aligning with a group structure, your financial year-end impacts accounting, tax filings, and business operations.

In this guide, we’ll walk you through how to choose your financial year-end, key tax deadlines, and the process of changing it if needed.

A financial year (or fiscal year) is a 12-month period used for accounting and financial reporting. Unlike a calendar year, a company’s financial year does not have to start on January 1st—it can begin and end on any date, as long as it covers a continuous 12-month period.

Common financial year-end dates in Hong Kong

Most Hong Kong companies choose one of the following:

✅ December 31st – Matches the calendar year.

✅ March 31st – Aligns with the Hong Kong Government’s financial year.

If a company does not specify a financial year-end date, it will default to the last day of the month in which its first anniversary of incorporation falls.

For example, a company incorporated on July 9, 2024, will have its default financial year-end as July 31, 2025.

First financial year-end for new companies

The first financial year cannot exceed 18 months from the incorporation date.

Setting the financial year-end properly from the start helps ensure compliance and a smoother accounting process.

When selecting a financial year-end, consider three key factors:

If your company is part of a group structure (e.g., holding company with subsidiaries), it’s advisable to align the financial year-end across all entities. This helps:

✅ Streamline financial reporting.

✅ Reduce accounting and auditing costs.

Additionally, some businesses prefer a financial year-end that aligns with their sales cycles to simplify revenue tracking.

Your chosen financial year-end directly impacts the filing and payment deadlines for your Profits Tax Return (PTR) with the Inland Revenue Department (IRD).

Here’s a general guide to PTR deadlines when you have appointed a tax representative (like blynq) to do the filing:

Financial Year-End Tax Filing Deadline (with Tax Representative Extension)

1 April – 30 November Early May next year (no extension)

1 – 31 December Mid-August next year

1 January – 31 March Mid-November the same year

🔹 If your company has a tax loss, you may be eligible for an additional two-month extension.

🔹 If you don’t appoint a tax representative, you must apply for a filing extension directly with the IRD.

Consider your business cash flow when setting your financial year-end: filing and tax payment deadlines should not coincide with periods of high expenses.

Aligning your financial year-end with your business cycle ensures:

✅ Revenue and expenses are properly matched.

✅ Your busiest months do not overlap with audit and tax filing periods.

Many companies choose quarter-end dates like March 31st, June 30th, September 30th, or December 31st to provide a clear financial snapshot.

Yes! You can change your financial year-end if it better suits your business. However, some rules apply.

When should you consider changing it?

🔹 To align with the Hong Kong Government’s fiscal year (March 31st).

🔹 To match the financial year-end of a parent company or group.

Rules for changing the financial year-end

🔹 The new financial period cannot exceed 18 months.

🔹 If this is not your first time changing it, shareholders’ approval is required. Except when the change is to align with the holding company’s financial year-end.

🔹 For public companies or guarantee companies, the change must be reported to the Companies Registry within 15 days.

🔹 A company cannot change its financial year-end if the change would require presenting audited financial statements and related documents at a general meeting twice within the same financial year.

💡 Tip: Before changing your financial year-end, you can apply for an advance ruling from the IRD to confirm there will be no negative tax adjustments.

Your financial year-end affects accounting, tax filings, and overall business operations. Selecting the right date can help optimize tax planning, reduce compliance risks, and improve financial clarity.

If you're unsure which financial year-end suits your business - or if you need help changing it - blynq is here to help.

Our team can guide you through the process and ensure compliance with Hong Kong’s tax and accounting requirements.

Contact us today to make the right financial decisions for your business!