Profits Tax Return
If you carry on a trade, profession or business in form of a corporation, partnership business or if a non-resident person is chargeable to profits tax in your name, you should complete the profits tax return and file it to the Inland Revenue Department (IRD) by the due date. This article will give you details on profits tax returns.
Types of Profits Tax Returns
Profits tax returns are issued to Corporations and Partnership Businesses for profits tax purposes. Profits from the carrying on of sole proprietorship business should be reported in Tax Return - Individuals (BIR60).
There are 3 series of profits tax return forms. You may download a specimen of the tax return forms for reference, but you should not use a printed copy of the specimen form for filing purposes.Profits Tax Return - Corporations (BIR51)Profits Tax Return - Persons Other Than Corporations (BIR52)Profits Tax Return - In Respect Of Non-Resident Persons (BIR54)
Who Should File
Newly Registered Business
Generally, a newly registered business will receive its first profits tax return some 18 months after the date of commencement of business or the date of incorporation.
Continuing Business - Annual Bulk Issue of Returns
The annual exercise to issue profits tax returns in bulk takes place on the first working day of April each year.
Business Not Required to Submit Return Annually
It is the practice of IRD not to call for the annual submission of profits tax returns in instances where the trade, profession or business carried on does not give rise to assessable profits or where the trade, profession or business has not commenced or has ceased and not recommenced. However, upon receipt of a profits tax return which may be issued from time to time in the course of reviewing your future tax potential, the requirement to lodge the return form must still be complied with.
When to File
Normal Filing Time
Generally, profits tax return should be filed within 1 month from the date of issue. The compliance date of submission is specified on page 1 of the profits tax return.
Further Extension for using Electronic Filing
To promote electronic filing, the Department will grant, on application, a further extension of 2 weeks after the normal due date subject to the condition that Small Corporations and Small Partnership Businesses will file the profits tax returns through the Internet. Please click here for the conditions that a corporation and a partnership must satisfy in order to use the Internet filing service.
Block Extension Scheme for Lodgement of 2015/16 Tax Returns
If your tax representative has duly applied for an extension to file your 2015/16 profits tax return under the Block Extension Scheme, the due date is normally extended as follows:
|Accounting Date||Extended Due Date||Electronic Filing Extended Due Date|
|For N Code Returns
(Accounting Date between 1 April to 30 November)
(Due date 3 May 2016)
|17 May 2016|
|For D Code Returns
(Accounting Date between 1 to 31 December)
|15 August 2016||29 August 2016|
|For M Code Returns
(Accounting Date between 1 January to 31 March)
|15 November 2016||29 November 2016|
|For M Code Returns
and Current Year Loss Cases
|1 February 2017||1 February 2017|
In the beginning of each year, IRD publishes a Circular Letter to tax representatives on the IRD website (in the “Tax Representatives’ Corner” under the menu of “Tax Information – Individuals/Businesses”), setting out details of the block extension scheme lodgement arrangements for the year and how the block extension can be applied for.More information on Block Extension Scheme for Tax Representatives
Application for Extension for the Submission of Return
As a general rule, a further extension of time beyond the extended due dates under the Block Extension Scheme will only be granted in the most exceptional circumstances. Any request for such extension should be made in writing with an explanation of why lodgement cannot be made in a timely manner, together with supporting evidence. You should not assume that any further extension will be granted.
Know more about the completion and filing of return and the consequences of failure to submit tax return on time through the following link:Completion and Filing of Return