In Hong Kong, the tax filing process for unlimited companies (including sole proprietorships and partnerships) is simpler than for limited companies. The core difference is that unlimited companies do not need to submit an audit report. Sole proprietors usually report company taxes through their Individual Tax Return (BIR60), while partnerships must complete the Profits Tax Return for Persons Other Than Corporations (BIR52). This article will detail the latest 2026 tax filing process for unlimited companies to help you achieve maximum tax savings using “Personal Assessment.”
Further Reading: Hong Kong Limited Company Tax Filing Guide
Basic Requirements for Unlimited Company Tax Filing
1. Types of Tax Forms
- Sole Proprietorship: Declared using the appendix within the Individual Tax Return BIR60.
- Partnership: The Inland Revenue Department will issue form BIR52 to the company, to be signed and submitted by the precedent partner.
2. Is an Audit Required?
Unlike limited companies, according to the Inland Revenue Ordinance, unlimited companies do not need to hire a practicing CPA for auditing. This significantly reduces the company’s operating costs.
2026 Unlimited Company Profits Tax Rates
| Assessable Profits | Unlimited Company Tax Rate |
|---|---|
| First HK$2 million of profits | 7.5% |
| Profits exceeding HK$2 million | 15% |
Unlimited Company Tax Filing Tutorial and Required Documents
![[Unlimited Company Tax Filing Document Checklist] General Accounting Professional Tutorial: The 4 documents required for unlimited company tax filing, including the completed Individual Tax Return (BIR60), Company Profit and Loss Account, Company Balance Sheet, and Tax Computation Schedule.](https://www.genacct.com/wp-content/uploads/2026/05/無限公司報稅教學4項所需文件-678x1024.webp "2026 Unlimited Company Tax Filing Guide: Sole Proprietorship/Partnership Procedures, Tax Rates, and Tax-Saving Tips 1")
Unlimited company tax filing does not require an audit, and the required documents are simpler than those for limited companies. Generally, the following documents must be submitted:
- Completed and signed Individual Tax Return
- Company Profit and Loss Account
- Company Balance Sheet
- Tax computation schedule or other supporting documents
Unlimited Company Tax Filing Process (5 Major Steps)
- Organize Accounting Records: Although no audit is required, owners must still retain business records (invoices, bank statements, etc.) for at least 7 years for potential inspection by the tax bureau.
- Prepare Financial Statements: Prepare the profit and loss account and balance sheet to calculate business profits.
- Complete the Tax Return:
- Sole Proprietorship: Fill out Part 5 “Profits Tax” of the Individual Tax Return (BIR60).
- Partnership: Fill out BIR52 and allocate profits to each partner proportionally.
- Select Tax Calculation Method: Evaluate whether to apply for “Personal Assessment” to utilize personal allowances and tax deduction items (such as MPF and mortgage interest).
- Submission and Payment: Submit within the deadline and pay on time after receiving the assessment notice.
Comparison Table: Sole Proprietorship vs. Limited Company Tax Filing
| Comparison Item | Unlimited Company (Sole Proprietorship/Partnership) | Limited Company |
|---|---|---|
| Audit Requirement | Not required | Must be audited by a CPA |
| Tax Form | BIR60 or BIR52 | BIR51 |
| Main Advantage | Simple procedures, low administrative costs | Limited legal liability, high tax planning flexibility |
| Loss Handling | Can offset other personal income | Can only be carried forward within the company to offset future profits |
Tax-Saving Tips: Why Choose "Personal Assessment"?
Unlimited company owners should use “Personal Assessment” to reduce tax. This allows you to aggregate business profits with other personal income (such as salary and property rental) and enjoy:
- Personal allowance (latest 2026 standard).
- Married person’s allowance.
- Child/Parental allowance.
- Tax deduction for mandatory MPF contributions.
Further Reading:
Salaries Tax Calculation, Personal Assessment, and Allowance Deductions Guide
How to Choose "Personal Assessment"?
Simply tick “Yes” in Part 7 of the Individual Tax Return to elect for Personal Assessment.
⚠️ Professional Tip: If you forget to select it, you should correct the errors or omissions in the tax return as soon as possible.
Further Reading:
Unlimited Company Tax Filing FAQ
Do I need to file taxes if the unlimited company is making a loss?
Yes. As long as the company exists, you must file a tax return if you receive one.
Company losses can be used to offset other income under "Personal Assessment" or carried forward to the next year to offset business profits.
Can I fill out the tax form myself without going through an accounting firm?
Legally, yes. However, if accounts are handled improperly, they can easily be questioned by the tax bureau, or deductible expenses may be missed. General Accounting suggests that owners seek professional assistance at least when preparing annual statements.
What is the deadline for unlimited company tax filing?
Sole Proprietorship: Within 3 months after the tax return is issued; Partnership: Within 1 month after the tax return is issued, though an extension can be applied for.
Further Reading: Guide to Deadlines and Extension Applications for Hong Kong Corporate and Individual Tax Returns
Conclusion
The key to 2026 unlimited company tax filing lies in making full use of personal allowances and the fact that no audit is required. Correct reporting via BIR60 or BIR52 and choosing Personal Assessment is the most direct path to tax savings for owners.
General Accounting has been established for over 20 years, providing tax filing services for unlimited and limited companies. If you have any questions regarding sole proprietorship/partnership tax filing, our professional customer service managers can provide a free preliminary unlimited tax service inquiry.
