{"id":5397,"date":"2025-05-28T17:55:29","date_gmt":"2025-05-28T09:55:29","guid":{"rendered":"https:\/\/setuphk.com\/?p=5397"},"modified":"2026-05-29T15:40:13","modified_gmt":"2026-05-29T07:40:13","slug":"freelancer-tax-guide","status":"publish","type":"post","link":"https:\/\/setuphk.com\/en\/freelancer-tax-guide\/","title":{"rendered":"2026 self-employed tax filing guide: how do casual workers, part-timers and freelancers file? A complete guide to self-employed tax filing"},"content":{"rendered":"<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Self-employed people file salaries tax or profits tax depending on whether they have an employment contract; those with both file both. Business-related expenses and mandatory MPF contributions (capped at HK$18,000) are deductible. Even if income is below the allowance or the business makes a loss, you must still file on time.<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Key takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Depending on whether they have an employment contract, self-employed people file salaries tax (employed) or profits tax (self-employed); those with both must file both. <\/li>\n\n\n\n<li>Even if income is below the allowance or the business makes a loss, you must still file on time, otherwise it may be treated as a failure to file. <\/li>\n\n\n\n<li>Business-related expenses (rent, equipment, advertising, etc.) and mandatory MPF contributions can be deducted for profits tax. <\/li>\n\n\n\n<li>A tax return must be submitted within one month of receipt; those who have not received a tax return must notify the IRD within four months after the end of the year of assessment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Who counts as self-employed?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Anyone who sells goods or provides services in their own name for profit, without a fixed employer, is self-employed (a freelancer). Common types include:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1-1024x1024.jpg\" alt=\"Who counts as self-employed\" class=\"wp-image-8369\" srcset=\"https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1-1024x1024.jpg 1024w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1-300x300.jpg 300w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1-150x150.jpg 150w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1-768x768.jpg 768w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1-12x12.jpg 12w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/freelancer-tax-guide-1.jpg 1300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Online shop or Instagram shop owners<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Selling goods in your own name, online or offline, counts as long as you are not employed by someone else.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business partner<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Running a business together with others (such as a tutoring centre, photography team or nail studio) and receiving a share of income from the partnership business.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Freelancers<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">No fixed employer; you take on projects and charge fees yourself. Common among designers, copywriters, photographers, illustrators, translators, fitness coaches and similar fields.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Casual part-time work<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Short-term jobs such as exhibition staff, event helpers and relief teaching, with no long-term employment relationship.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What tax does a self-employed person need to file?<\/h3>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">For self-employed people in Hong Kong, tax filing is divided by employment contract: those with a fixed employer file salaries tax, those who take on projects or run a business file profits tax, and those with both must file both. Even if income is below the allowance, a tax return must still be submitted on time.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Tax filing is based on <strong>whether an employment contract exists<\/strong> as the test:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Status<\/th><th>Tax to file<\/th><\/tr><\/thead><tbody><tr><td>Employed by a company (employment contract, fixed pay, MPF contributions)<\/td><td>Salaries tax<\/td><\/tr><tr><td>Running your own business or taking on freelance work (no employment contract)<\/td><td>profits tax<\/td><\/tr><tr><td>Both employment income and self-employment income<\/td><td>Salaries tax + profits tax<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Three examples of self-employed tax filing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Alen<\/strong>: A full-time marketing professional who takes on freelance work after hours, with clients paying by direct transfer. \u2192 Must file <strong>Salaries tax + profits tax<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ken<\/strong>: A freelance photographer with no employment relationship, who finds their own clients and sets their own fees. \u2192 Must file <strong>profits tax<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Zoe<\/strong>: A part-time tutor at a language centre, working two days a week, with no other income. \u2192 Must file <strong>Salaries tax<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Deductions for the self-employed<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1024x1024.webp\" alt=\"Tax-deductible items for the self-employed\" class=\"wp-image-6492\" srcset=\"https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1024x1024.webp 1024w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-300x300.webp 300w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-150x150.webp 150w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-768x768.webp 768w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide.webp 1300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Business-related expenses<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When filing profits tax, you can claim a deduction for any expense you can show is directly related to earning business income. Common items include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating costs required to provide the services<\/li>\n\n\n\n<li>Advertising and marketing expenses<\/li>\n\n\n\n<li>Costs of equipment and apparatus used in the business<\/li>\n\n\n\n<li>Cost of goods purchased and related procurement<\/li>\n\n\n\n<li>Fees for accounting and tax filing advisers<\/li>\n\n\n\n<li>Office rent, utilities and communication costs<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Keeping all receipts and payment records is essential. In an IRD check, you will need to provide evidence that the expense is genuinely business-related.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Mandatory MPF contributions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Mandatory contributions that a self-employed person makes to an MPF scheme can be deducted as a business expense in the profits tax return, capped at HK$18,000 per year of assessment.<a href=\"https:\/\/www.mpfa.org.hk\/mpf-system\/voluntary-contributions-or-tax-deductible-voluntary-contributions\/tax-deductible-voluntary-contributions\" target=\"_blank\" rel=\"noreferrer noopener\">Voluntary contributions<\/a> Generally not deductible (except tax-deductible voluntary contributions).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Personal allowances and other deductions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Self-employed people are likewise entitled to the personal basic allowance and other deductible items (such as self-education expenses and voluntary health insurance scheme premiums); see <a href=\"\/en\/salaries-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">Salaries tax calculation and personal allowances: a complete guide<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the married person's allowance arrangements, see <a href=\"\/en\/married-person-allowance-hk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Married person's allowance and joint assessment: a guide<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax returns by status<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Status<\/th><th>Tax return<\/th><\/tr><\/thead><tbody><tr><td>Sole proprietorship<\/td><td>BIR60 (Tax Return - Individuals)<\/td><\/tr><tr><td>Corporation<\/td><td>BIR51<\/td><\/tr><tr><td>Unincorporated business<\/td><td>BIR52<\/td><\/tr><tr><td>Business operated by non-Hong Kong residents<\/td><td>BIR54.<\/td><\/tr><tr><td>Contract worker<\/td><td>IR56M.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">How do I file without business registration?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Any profit-making business in Hong Kong must hold a Business Registration Certificate. If you have not yet registered, you must still file a tax return with the IRD. Those who earn income without any employment relationship and without business registration must file under salaries tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To learn about the business registration application process, see <a href=\"\/en\/apply-business-registration\/\" target=\"_blank\" rel=\"noreferrer noopener\">Guide to applying for a Business Registration Certificate<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How do I file with business registration?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Those with business registration will receive a profits tax return and must report total annual income, total expenses and deductible items, and have invoices, receipts and transfer records ready as the basis for the filing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Operating through a company requires an accountant to audit<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A business operated as a limited company must, regardless of income, submit audited financial statements each year under the Companies Ordinance, with an audit report issued by a licensed accountant, and file a profits tax return. Company filing is more complex than individual filing, involving the balance sheet, profit and loss account and expense details, but offers greater scope for tax planning. For details, see <a href=\"\/en\/accounting-services\/\" target=\"_blank\" rel=\"noreferrer noopener\">SetupHK accounting and audit services<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Six-step process for self-employed tax filing<\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Tax filing for the self-employed in Hong Kong takes six steps: receive the tax return, organise income and expense records, calculate deductible items and assessable profits, complete and submit the return, pay the tax (generally in two instalments), and keep up bookkeeping for the next year. The whole process can be done online (eTAX) or on paper.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"769\" height=\"1024\" src=\"https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1-769x1024.webp\" alt=\"Tax filing guide for the self-employed\" class=\"wp-image-6493\" srcset=\"https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1-769x1024.webp 769w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1-225x300.webp 225w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1-768x1022.webp 768w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1-1154x1536.webp 1154w, https:\/\/setuphk.com\/wp-content\/uploads\/2025\/05\/hk-freelancer-tax-guide-1.webp 1300w\" sizes=\"(max-width: 769px) 100vw, 769px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 1: receive the tax return<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IRD generally sends out tax returns, or notices via eTAX, in early May each year. Self-employed people usually receive the Tax Return - Individuals (BIR60); those operating as a company receive the Profits Tax Return (BIR51).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 2: organise business income and expense records<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gather all client payments for the previous year of assessment (cash, bank transfers, FPS, etc.) and business-related expenses, and have receipts, invoices and transfer records ready.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 3: calculate assessable profits<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Total income less operating expenses gives net profit; deducting qualifying deductible items then gives assessable profits, which is the basis for deciding whether tax is payable and how much.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 4: complete and submit the tax return<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can submit a paper return by post, or file online through <a href=\"https:\/\/etax.ird.gov.hk\" target=\"_blank\" rel=\"noopener\">eTAX<\/a>. If you use paper, mind the posting time: the IRD goes by the date of receipt, not the date of posting, to decide whether the return is on time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 5: Wait for the tax bill and pay your tax<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IRD generally issues the formal tax bill within two months of receiving the tax return; tax is usually paid in two instalments:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Instalment<\/th><th>Usual payment deadline<\/th><\/tr><\/thead><tbody><tr><td>First instalment<\/td><td>Before mid-January<\/td><\/tr><tr><td>Second instalment<\/td><td>Before early April<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 6: keep up bookkeeping to prepare for next year<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We suggest keeping regular books and retaining supporting documents throughout the year, rather than scrambling to organise them each filing season. Complete income and expense records not only make filing quicker but also help you keep track of how the business is doing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Consequences of late or non-filing<\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Under Hong Kong's <a href=\"https:\/\/www.ird.gov.hk\/chi\/tax\/noc.htm\" target=\"_blank\" rel=\"noreferrer noopener\">section 51 of the Inland Revenue Ordinance<\/a>, self-employed people are responsible for notifying the IRD of their chargeable income. Not having received a tax return does not remove the obligation to file; failure to file truthfully may lead to recovery of tax and penalties, and wilful tax evasion may lead to criminal prosecution.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Many self-employed people wrongly believe that not receiving a tax return means they need not file. In fact, section 51 of the Inland Revenue Ordinance expressly provides that taxpayers are responsible for notifying the IRD of any chargeable income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What to do if you have not received a tax return<\/strong>: You must notify the IRD in writing within four months after the end of the basis period of the year of assessment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Consequences of not filing<\/strong>: If discovered, you must pay the tax for all unreported years plus the corresponding penalties and interest; if deemed wilful tax evasion, the IRD may bring a criminal prosecution, affecting your credit record and future tax filing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">If my income is below the allowance, do I still need to file?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. The allowance determines whether you <strong>pay tax<\/strong>, while the filing obligation exists independently. As long as you carry on business activities, you must file with the IRD, or it may be treated as a failure to file.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">If my company makes a loss, do I still need to file tax?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. A limited company, whether profitable or loss-making, must submit audited financial statements and a profits tax return every year. This is a statutory obligation and is not waived because of a loss.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">My part-time employer already reports salaries tax for me. Do I need to file separately for the self-employed part?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. The IRD does not automatically combine the two parts of income; self-employment income must be filed separately under profits tax. Even if you have no self-employment income at all, you must state and confirm this in the tax return to complete the filing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">I found mistakes after submitting my tax return. Can I correct them?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. You can send a written notice of amendment, or log in to the eTAX platform and use the \u201ccorrect tax return information\u201d function. We suggest acting early, to avoid having to amend after the IRD has already calculated the bill on the wrong information, which is a more cumbersome procedure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The core principle of self-employed tax filing: <strong>regardless of income or business profit or loss, you must file on time<\/strong>. On that basis, organising business income and expense records properly and making good use of lawful deductions is how you reduce your tax burden while staying compliant.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you need help organising your accounts or handling your tax filing, find out about <a href=\"\/en\/taxation-service\/\" target=\"_blank\" rel=\"noreferrer noopener\">SetupHK tax filing services<\/a>, or contact the SetupHK team directly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Further reading<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"\/en\/salaries-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">Salaries tax calculation and personal allowances: a complete guide<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"\/en\/married-person-allowance-hk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Married person's allowance and joint assessment: a guide<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"\/en\/profits-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">Guide to Hong Kong profits tax filing<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"\/en\/provisional-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">Salaries tax provisional tax calculation<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Last updated: May 2026<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>\u81ea\u50f1\u4eba\u58eb\u6309\u6709\u7121\u50f1\u50ad\u5408\u7d04\u5206\u5225\u7533\u5831\u85aa\u4ff8\u7a05\u6216\u5229\u5f97\u7a05\uff1b\u5169\u8005\u517c\u6709\u5247\u540c\u6642\u7533\u5831\u3002\u696d\u52d9\u76f8\u95dc\u652f\u51fa\u53ca\u5f37\u7a4d\u91d1\u5f37\u5236\u6027\u4f9b\u6b3e\uff08\u4e0a\u9650 HK$ [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6491,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[290,291,292,293],"class_list":["post-5397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-information","tag-290","tag-291","tag-292","tag-293"],"_links":{"self":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts\/5397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/comments?post=5397"}],"version-history":[{"count":6,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts\/5397\/revisions"}],"predecessor-version":[{"id":8374,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts\/5397\/revisions\/8374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/media\/6491"}],"wp:attachment":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/media?parent=5397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/categories?post=5397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/tags?post=5397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}