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### Lead Hong Kong’s company register continued to expand in the first half of 2026. The Companies Registry released statistics on 17 July 2026 showing that newly registered local companies and re-domiciled companies totalled 122,481, while the total number of companies on the register reached a new high of 1,609,720. ### Key figures - **New registrations (Jan–Jun 2026):** 122,481 local companies and re-domiciled companies. - **Total local and re-domiciled companies at end-June 2026:** 1,609,720 — a record high. - **Non-Hong Kong companies newly establishing a place of business:** 903; total reached 16,014, also a record high. - **Re-domiciliation regime (in operation since 23 May 2025):** 70 applications received by end-June 2026, 42 companies successfully re-domiciled to Hong Kong, including two insurance companies and one listed company. Original places of incorporation include the BVI, Luxembourg, the Cayman Islands and Bermuda. - **Charges on properties of companies registered:** 7,225. - **Notifications of payments and releases registered:** 10,336. - **Electronic document-image-record searches:** 2,586,117. - **Limited partnership funds (LPFs):** 406 new registrations; total 1,729. - **Open-ended fund companies (OFCs):** 79 new incorporations; total 752. - **TCSP licences granted:** 333; total 7,412. - **Money-lender licences granted by the Licensing Court:** 66; total 1,962. ### What this means for businesses - The numbers reflect continued use of Hong Kong as a company registration, fundraising and fund-structuring jurisdiction. - The re-domiciliation route remains a live option for overseas companies wanting to relocate their domicile to Hong Kong while preserving legal identity and operational continuity. - Companies that have recently registered still need to meet ongoing compliance obligations: company secretary, registered office, annual return, beneficial-ownership filing where applicable, and accounting/tax arrangements. - Non-Hong Kong companies that have registered a place of business in Hong Kong must keep their branch registration and filing obligations up to date. ### Source Companies Registry: https://www.cr.gov.hk/en/publications/news-press/press/20260717.htm ### Disclaimer The above is general information and does not constitute legal, accounting, tax or professional advice. Businesses should check the official release and consult qualified advisers for their specific circumstances. ### SEO - Title: Hong Kong Company Registrations Reach a Record High: First-Half 2026 and Re-domiciliation Trends - Meta description: Companies Registry statistics for the first half of 2026 show Hong Kong company registrations at a record high, with 42 companies already re-domiciled. - Keywords: Hong Kong company registration, Companies Registry, re-domiciliation, non-Hong Kong company, first half 2026, company secretary, annual return

<p>The Inland Revenue Department (IRD) announced on 14 July 2026 that the filing deadlines for 2025/26 Profits Tax returns with Accounting Date Code “D” under the Block Extension Scheme have been further extended.</p><h2>Who is covered?</h2><p>The extension applies only to D-code Profits Tax returns handled under the Block Extension Scheme—namely, cases with an accounting date falling between <strong>1 December 2025 and 31 December 2025</strong>.</p><p>It should not be read as a general extension for every 2025/26 Profits Tax return or as an automatic individual extension outside the Scheme.</p><h2>Revised deadlines</h2><ul><li><strong>Paper filing:</strong> extended from 17 August 2026 to <strong>31 August 2026</strong>.</li><li><strong>Electronic filing:</strong> extended from 17 September 2026 to <strong>2 October 2026</strong>.</li></ul><p>The IRD nevertheless encourages tax representatives to file as many returns as possible well before the extended dates.</p><h2>What should businesses do now?</h2><p>The extra time should be treated as a filing buffer rather than a reason to postpone the underlying work. Businesses and their tax representatives should continue to:</p><ul><li>finalise accounting records and schedules;</li><li>complete the audit, where applicable;</li><li>prepare tax computations and supporting documents;</li><li>resolve outstanding information requests;</li><li>arrange review and directors’ approval or signature where required; and</li><li>confirm whether the return is being filed on paper or electronically.</li></ul><p>Businesses should agree a working timetable with their tax representative and retain evidence of submission.</p><p><strong>Official source:</strong> <a href="https://www.ird.gov.hk/eng/pdf/bel26ea.pdf">https://www.ird.gov.hk/eng/pdf/bel26ea.pdf</a></p><p><em>This article provides general information only and does not constitute accounting, tax or legal advice. The Block Extension Scheme is administered through tax representatives and the applicable filing position depends on the taxpayer’s circumstances.</em></p>

<p>A Legislative Council written reply published on 8 July 2026 provides an updated picture of Hong Kong's oversight of charitable organisations. As at 31 March 2026, there were <strong>11,079</strong> tax-exempt charities under section 88 of the Inland Revenue Ordinance. During 2025/26, 412 charities were newly exempted and <strong>205</strong> had their exemption status withdrawn.</p><h2>What do the withdrawal figures mean?</h2><p>The 205 withdrawals should not be treated as 205 compliance breaches. The official breakdown was: 106 charities dissolved or wound up, 24 ceased operation or became dormant, 74 did not respond to the Inland Revenue Department (IRD) or were untraceable, and one no longer qualified as a charitable institution or trust of a public character. The IRD does not maintain a breakdown of withdrawals specifically arising from failure to pass regular reviews.</p><h2>How does the IRD review charities?</h2><p>The IRD reviews whether an organisation's objects remain charitable and whether its activities are compatible with those stated objects. Each case is considered on its own facts and circumstances. Section 88 tax exemption also requires the relevant statutory conditions to be met, including rules on applying profits solely for charitable purposes and restrictions concerning expenditure outside Hong Kong and trading activities.</p><h2>Practical records for charities and NGOs</h2><ul><li>Keep governing documents, board resolutions and programme records aligned with the stated charitable objects.</li><li>Maintain complete income, expenditure, donation and supporting records, together with audited financial statements where applicable.</li><li>Respond promptly to IRD enquiries and keep contact and registration particulars current.</li><li>For public-place fundraising, identify the relevant permit or licence requirements. Depending on the activity, the responsible department may require an income and expenditure statement and an auditor's report prepared and certified by a professional accountant.</li></ul><h2>Is a charity commission being established?</h2><p>No new commission or timetable was announced in the reply. The Government said it would continue to review the suitability and timing of such an arrangement. This is a statement of the current regulatory position, not a new law.</p><p><strong>Source:</strong> <a href="https://www.ird.gov.hk/eng/ppr/archives/26070801.htm">https://www.ird.gov.hk/eng/ppr/archives/26070801.htm</a></p><p><em>This article provides general information only and does not constitute accounting, tax or legal advice. Organisations should review their governing documents, activities and applicable permit conditions, and seek professional advice for their circumstances.</em></p>

<p>The Rating and Valuation Department has issued demands for rates and/or Government rent for the July–September 2026 quarter. Payment must be made by <strong>31 July 2026</strong>.</p><h2>What should businesses check?</h2><ul><li><strong>Rates concession:</strong> the demand reflects the concession for this quarter, capped at HK$500 for each rateable tenement. Unused concession cannot offset rates due for another quarter.</li><li><strong>Government rent:</strong> there is no concession for Government rent.</li><li><strong>Demand not received:</strong> non-receipt or late receipt does not change the payment deadline. Payers should contact the Rating and Valuation Department if a demand has not arrived.</li><li><strong>Autopay:</strong> the amount will be debited on 31 July. Ensure sufficient funds remain in the bank account until settlement.</li><li><strong>Other payment methods:</strong> FPS, PPS, Internet banking, ATM, e-Cheque/e-Cashier Order, cheque by post, post offices and designated convenience stores are among the stated options.</li></ul><h2>What happens if payment is late?</h2><p>A 5% surcharge will be imposed for late payment. A further 10% surcharge will be levied on the unpaid amount, including the initial surcharge, if it remains unpaid six months after the deadline.</p><p>Businesses with offices, shops, warehouses or other rateable premises should reconcile the demand with their property records, confirm the payment arrangement and retain the demand and payment evidence for accounting records.</p><p><strong>Source:</strong> <a href="https://www.info.gov.hk/gia/general/202607/10/P2026070800704.htm">https://www.info.gov.hk/gia/general/202607/10/P2026070800704.htm</a></p><p><em>This article provides general information only and does not constitute accounting, tax, legal or investment advice. Businesses should check the official demand and seek professional advice for their circumstances.</em></p>

<p>Hong Kong is expanding practical support for small and medium enterprises (SMEs) that want to adopt artificial intelligence. In a Legislative Council written reply issued on 8 July 2026, the Government outlined measures covering funding, advisory support, training and the wider commercialisation of AI solutions.</p><h2>AI measures can form part of eligible BUD Fund projects</h2><p>Since mid-June 2026, the Guide to Application of the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) has expressly stated that eligible project measures may include AI, provided that the existing BUD Fund criteria are met. Examples include developing an AI chatbot for a company website and using AI to check whether production lines meet target-market regulatory requirements.</p><p>This does not mean every AI purchase or subscription automatically qualifies. Applicants still need to connect each measure to an eligible market-development, branding, upgrading or restructuring objective and prepare suitable quotations, budgets, implementation plans and evidence.</p><h2>An enhanced digital transformation programme is being prepared</h2><p>The existing HK$500 million Digital Transformation Support Pilot Programme has helped nearly 8,800 SMEs adopt off-the-shelf and basic digital solutions on a matching-fund basis. The Government plans an additional HK$300 million to encourage AI and cybersecurity adoption and is considering coverage of more sectors.</p><p>The enhanced programme is not yet open for application. Its funding model, scope, funding levels and implementation details remain under review. The stated target is a launch in the second half of 2026 after consultation with the Legislative Council.</p><h2>Advisory and capacity-building support</h2><p>SME ReachOut and the four SME centres provide funding referrals, consultations and seminars. From July 2025 to June 2026 they organised 13 AI-related seminars with more than 900 participants. The HKTDC also supports process automation and digital marketing through its Transformation Sandbox and AI learning through its Digital Academy.</p><p>For import and export businesses, possible uses include customer-service chatbots, target-market regulatory checks, supply-chain forecasting and risk management. Businesses should assess data protection, cybersecurity, internal controls, staff responsibilities and measurable outcomes before deployment.</p><h2>What SMEs can prepare now</h2><ul><li>Define the operational problem and expected measurable result.</li><li>Map the proposal to the applicable funding objective and eligibility rules.</li><li>Prepare quotations, milestones, budgets and performance indicators.</li><li>Review data access, cybersecurity, regulatory and contractual risks.</li><li>Keep complete procurement, payment and project records.</li></ul><p>HKBSCL can assist with funding-application preparation, project budgeting and accounting records, workflow review and related corporate compliance support.</p><p><strong>Source:</strong> Hong Kong Government, “LCQ7: Support for SMEs in import and export sector in adopting AI”, 8 July 2026: <a href="https://www.info.gov.hk/gia/general/202607/08/P2026070800534.htm">https://www.info.gov.hk/gia/general/202607/08/P2026070800534.htm</a></p><p><em>This article is for general information only and does not constitute legal, tax, accounting, cybersecurity or funding-approval advice.</em></p>

The Hong Kong Government welcomed the Legislative Council’s passage of the Stamp Duty (Amendment) (No. 2) Bill 2026 on 8 July 2026. The amendment provides for the calculation and payment of stamp duty arising from transactions of dual-counter stocks conducted at the Renminbi (RMB) counter in RMB. Under the new arrangement, investors will be able to settle both the securities trade and the associated stamp duty in RMB at the same RMB counter. The Government expects this to support turnover and liquidity at RMB counters and strengthen the role of RMB as an international investment currency. For businesses, investors and treasury teams involved in Hong Kong-listed securities or cross-border RMB activities, the change may simplify settlement and cash-flow planning by reducing the need to arrange Hong Kong dollar funding solely for the stamp duty component of an RMB-counter transaction. Relevant operational, accounting and system procedures should nevertheless be reviewed before implementation. The Amendment Ordinance is scheduled to be published in the Gazette on 17 July 2026. However, the new arrangement does not take effect automatically on that date. Its commencement date will be appointed separately by the Secretary for Financial Services and the Treasury through a Gazette notice, allowing time for system preparations by Hong Kong Exchanges and Clearing Limited, the industry and relevant government departments. Businesses and investors should therefore monitor the official commencement notice and implementation details before changing settlement procedures. This article is for general information only and does not constitute legal, tax or investment advice. Source: Inland Revenue Department / Information Services Department — https://www.ird.gov.hk/eng/ppr/archives/26070804.htm

The Hong Kong Institute of Certified Public Accountants (HKICPA) has highlighted recent technical updates including Handbook Update No. 347, HKFRS 18 Presentation and Disclosure in Financial Statements, HKFRS 19 Subsidiaries without Public Accountability: Disclosures, and related implementation resources. The newsletter also refers to upcoming technical activities and comment deadlines, including an IFRS Interpretations Committee comment deadline in July 2026. For Hong Kong businesses, the most practical point is that financial reporting presentation and disclosure requirements are continuing to evolve. HKFRS 18 is expected to affect how companies present the statement of profit or loss, including new categories, required subtotals and disclosures around management-defined performance measures. HKFRS 19 may also be relevant to eligible subsidiaries that do not have public accountability and are preparing financial statements under the applicable standard. Although these updates are not an immediate tax filing deadline, they are important for companies that prepare annual financial statements, undergo audits, report to banks or investors, or maintain management accounts. Finance teams may need to review chart-of-account structures, reporting templates, management performance indicators and audit timetables before the new presentation and disclosure requirements become fully effective. Businesses should consider discussing the upcoming changes with their accounting or audit advisers early, especially where group reporting, loan covenant reporting, investor communication or management-defined performance measures are involved. Early preparation can reduce year-end pressure and help ensure that financial statements remain clear, consistent and compliant. This article is for general information only and does not constitute accounting, audit, legal or tax advice. Companies should consider their own circumstances and seek professional advice where appropriate. Source: HKICPA Technical News / newsletter — https://ri-plus.rimanggis.com/email/resolve/eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJhcHBfaW5zdGFuY2VfaWQiOjIwODQyNjY4NzEsImNudF9lbWFpbF9pZCI6NDI1MzQsImVkaXRpb25faWQiOm51bGwsImh0bWxfdHlwZSI6ImVtYWlsX2NvbnRlbnQiLCJleHRyYV9wYXlsb2FkIjp7ImFwcF90cmFuc2l0aW9uX2lkIjoyMTAyMDQsInJlY2lwaWVudCI6Imhvd2FpbG9rMTEyMEBob3RtYWlsLmNvbSJ9fQ.bJFNntOfwkoMpaN6qZQGEbIDGwR7FghQt5wv7q0kFU8?version=1

The Accounting and Financial Reporting Council (AFRC) published its 2025–26 Annual Report on 24 June 2026. The report, themed “Accounting for the Future”, outlines the AFRC’s work in promoting audit and financial reporting excellence, reinforcing Hong Kong’s role as a global financial hub, and supporting the long-term development of the accounting profession. According to the AFRC, during the reporting period it issued 16 publications and held 102 stakeholder engagement activities, reaching more than 37,000 stakeholders. The report also highlights areas including regulatory compliance, audit quality, corporate governance, AI innovation and sustainability. For Hong Kong companies, these themes are a useful reminder that audit preparation and financial reporting are not only year-end formalities. Directors and management teams may need to maintain clear accounting records, strengthen internal review processes, and ensure that audit and reporting arrangements are planned with sufficient time. Companies preparing for annual audit, financial statements or corporate compliance work should review whether their records, supporting documents and reporting timetable are ready. Professional accounting and audit support can help businesses organise information more consistently and reduce avoidable delays. This article is for general information only and should not be treated as accounting, audit, legal or tax advice. Businesses should consider their own circumstances and seek professional advice where appropriate. Source: Accounting and Financial Reporting Council (AFRC) — https://www.afrc.org.hk/en-hk/news-centre/press-releases/afrc-issues202526-annual-report

Invest Hong Kong announced that the New Capital Investment Entrant Scheme (New CIES) has reached its two-year milestone, with 3,166 applications received as at 28 February 2026 and an expected investment amount of about HK$95 billion to be brought into Hong Kong. Among these applications, 1,762 had completed investments and obtained formal approval from the Immigration Department. The figures reflect continued market interest in Hong Kong as an investment, wealth management and business platform. For entrepreneurs, high-net-worth individuals and family offices considering Hong Kong, the New CIES may also create practical needs around company incorporation, corporate structuring, accounting records, tax compliance and ongoing company secretarial support. The announcement also noted scheme enhancements, including greater flexibility for eligible private holding company arrangements and the continued operation of the CIES Investment Portfolio. These developments may be relevant for investors who plan to hold permissible assets through appropriate corporate or family-office structures. Businesses and investors should review the latest official New CIES rules and seek professional advice before making decisions, as eligibility requirements, permissible investment assets and immigration procedures depend on individual circumstances. Source: New CIES / Invest Hong Kong – Two-year milestone announcement, 2 March 2026: https://www.newcies.gov.hk/en/resources/news/two-year-milestone-new-capital-investment-entrant-scheme-attracts-nearly-3-200-applications-with-expected-investment-of-about-hk-95-billion-reflecting-global-confidence-in-hong-kong-with-photos/ This article is for general information only and should not be treated as legal, tax, immigration or investment advice.

The Hong Kong Government welcomed the passage of the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 by the Legislative Council on 17 June 2026. The amendment enhances Hong Kong's administrative framework for the automatic exchange of financial account information in tax matters (AEOI). Hong Kong has conducted AEOI with partner tax jurisdictions annually since 2018 under the OECD Common Reporting Standard, with safeguards for data confidentiality and security. The regime assists tax authorities in assessing tax residents and combating cross-border tax evasion. According to the Government's announcement, new requirements will take effect from 1 January 2027. These include requiring reporting financial institutions to register with the Inland Revenue Department, strengthening due diligence record-keeping requirements, and increasing penalties to enhance deterrence. For businesses, financial institutions and groups with cross-border structures, the update is a reminder to review tax residency information, financial account documentation, due diligence records and internal compliance processes. Companies with overseas shareholders, directors, bank accounts or investment structures should keep clear supporting records and monitor further IRD guidance. This article is for general information only and should not be treated as tax advice. For case-specific questions, businesses should consult professional advisers. Source: Inland Revenue Department / Information Services Department, https://www.ird.gov.hk/eng/ppr/archives/26061706.htm

The recently announced 2026–27 Budget focuses on the core theme of "Innovation-driven, Finance-empowered, Diversified Development, and Caring for the People" to steer the economy forward. For Small and Medium Enterprises (SMEs), this budget introduces several targeted financial reliefs and strategic initiatives designed to bolster competitiveness in an increasingly digital global market. Direct Financial Relief and Funding Boosts SMEs can look forward to immediate cost-saving measures and enhanced funding support: • Tax and Rates Relief: A 100% reduction in profits tax for the 2025–26 assessment year is provided, subject to a $3,000 ceiling. Additionally, rates for non-domestic properties will be waived for the first two quarters of 2026–27, capped at $500 per quarter. • "BUD" Fund Expansion: To assist businesses in expanding into outside markets, the government is injecting 200 million into the "BUD" Fund. Notably, the grant ceiling for "EasyBUD" applications is being raised to 150,000 per case. • Industry-Specific Support: For those in the food sector, food safety testing certificate fees will be waived for two years to facilitate market expansion. Empowering SMEs through Technology and AI The budget places a heavy emphasis on AI-driven transformation, which offers SMEs a pathway to modernization: • AI Training and Application: A total of $50 million has been allocated to support AI application learning courses, seminars, and competitions, ensuring the workforce is equipped for a "digital and intelligent" ("数智化") transition. • I&T Guidance: A $10 billion Innovation and Technology (I&T) Industry Guidance Fund will be launched within the year to support emerging industries. • R&D Incentives: The government plans to review and optimise tax arrangements for Research and Development (R&D) expenditures, which could provide significant fiscal space for innovative SMEs. Strategic Growth and Market Expansion Beyond direct subsidies, the budget outlines frameworks to help SMEs scale and protect their assets: • New Industrialisation: The "New Industrialisation Elite Enterprise Cultivation Programme" will be launched this year to provide focused support for high-growth enterprises. • Intellectual Property (IP) Support: To encourage the trade of ideas, the government is proposing tax deductions for capital expenditure on purchasing IP and has reserved $52 million to establish an "Intellectual Property Academy". • Logistics and Trade: The "Future Smart Logistics Accelerator Scheme" will be introduced to promote data interconnectivity, while the Export Credit Insurance Corporation (ECIC) will launch a pilot scheme to help SMEs explore higher-risk new markets. Economic Outlook These measures come at a time when the government predicts a consolidated surplus of $22.1 billion for 2026–27, with fiscal reserves expected to reach $733.7 billion by March 2031. By leveraging these new grants and tax incentives, SMEs can better position themselves to contribute to Hong Kong’s high-quality economic development.

To support businesses and practitioners in coping with their recent operational needs, the Inland Revenue Department has decided to further extend the due date for filing 2024/25 Profits Tax returns with Accounting Date Code ‘M’ (i.e. accounting date falling within 1 January 2025 to 31 March 2025) in paper form from 2 December 2025 to 15 December 2025. The due date for filing the tax returns electronically remainsunchanged (i.e. 2 January 2026). Despite this extension, tax representatives are encouraged to file as many returns as possible well before the further extended due date.

On October 3, the tax administration announced that, starting from October 6, 2025, the annual interest rate for tax saving bonds will change from the current 0.3417% to 0.2583%. Under the new rate, you can earn 0.0215 yuan in interest per 100 yuan each month. The interest on tax saving bonds is calculated using simple interest. Interest accrues from the purchase date until the date the bond is used to pay tax, calculated monthly, and interests can be earned proportionally for periods less than a month. Interest is only calculated when the bond is used to pay tax. If the principal value of the bond is returned to its holder, no interest is paid. The interest rate for tax saving bonds is based on the average 12‑month fixed‑term deposit rates for deposits of 100,000 to 499,999 yuan at three issuing banks, reviewed monthly. The new rate applies to all bonds purchased on or after October 6, 2025. Bonds purchased before that date will still use the rate in effect on the purchase date. The following table shows recent rates: - Bonds purchased on or after June 3, 2024 but before October 7, 2024: annual rate 0.8833% - Bonds purchased on or after October 7, 2024 but before November 4, 2024: annual rate 0.8000% - Bonds purchased on or after November 4, 2024 but before December 2, 2024: annual rate 0.7167% - Bonds purchased on or after December 2, 2024 but before January 6, 2025: annual rate 0.5500% - Bonds purchased on or after January 6, 2025 but before February 3, 2025: annual rate 0.4250% - Bonds purchased on or after February 3, 2025 but before October 6, 2025: annual rate 0.3417% - Bonds purchased on or after October 6, 2025 until further notice: annual rate 0.2583% Bonds will stop earning interest after 36 months.

The Accounting and Finance Reporting Authority (AFRA) released an article titled "Maintaining Capital Market Credibility: Carefully Appointing Auditors and Determining Audit Fees," emphasizing the importance of improving audit quality. It notes that the recent rapid resignation problem among auditors has markedly improved, dropping from 70 % in 2021 to 30 % in 2024. To further enhance audit quality, AFRA offers the following observations and recommendations: **Challenges of Hasty Auditor Appointment** Between 2020 and 2024, 45 % of auditor resignations occurred within a month before or after the fiscal year-end, tightening audit timelines and increasing the risk of first‑year audit misstatements. **Competitive Underpricing** Seventy‑three percent of auditor changes accompanied a reduction in audit fees, potentially leading auditors to cut back on audit procedures, reduce sample sizes, or rely on less‑experienced staff, thereby compromising audit quality and heightening the risk of non‑compliance. **Delayed Audit Fee Payments** As of 31 March 2025, at least ten listed companies had not fully paid their 2023 and/or 2024 audit fees, with some delays extending up to 30 months. This could erode auditor independence and increase the risk of biased audit opinions. **AFRA’s Recommendations** • **Audit Committees** should appoint auditors early, carefully evaluate low‑bid proposals, and ensure timely fee payment to preserve independence. • **Auditors** should set reasonable fees, decline rushed engagements due to resource constraints, and establish fair payment terms. **Goal** AFRA stresses that audits are a professional service essential for maintaining trust in capital markets. Fees should reflect service quality and be paid on time, supporting accounting firms’ investment in talent and technology to promote Hong Kong’s resilience as an international financial centre.

The Inland Revenue Department (IRD) launched three new tax portals under eTAX today (July 22), namely the Individual Tax Portal (ITP), Business Tax Portal (BTP) and Tax Representative Portal (TRP), to further enhance the efficiency and user experience of electronic tax services. An IRD spokesman said, "The IRD is committed to promoting tax digitalisation and has been upgrading electronic tax services to provide convenience to taxpayers and enhance the efficiency, reliability and accuracy of return filing. The three new tax portals provide electronic tax services to individuals, businesses, and tax service agents respectively, allowing them to handle tax matters conveniently and efficiently." The ITP offers a centralised platform for users to manage their personal tax matters, providing functions such as tax return filing, personal particulars updates and viewing of tax positions. Individual users may also use the ITP on their mobile devices anytime, anywhere via the "eTAX" mobile application launched by the IRD today. The BTP is specifically designed for businesses to handle tax matters and compliance obligations electronically, including tax return filing and business registration. The TRP caters to tax service agents (tax representatives, company secretaries and other tax service providers) to facilitate them in managing clients' tax matters, including tax return filing and compliance tracking. "Profiles of existing eTAX users have been migrated to the ITP. They can use their registered information to log into the ITP. Businesses and service agents are encouraged to open an eTAX account as early as possible to handle tax matters electronically through the BTP and TRP in a safe, convenient and environmentally friendly way," the spokesman said.

In view of genuine operational difficulties faced by businesses and tax practitioners, the Inland Revenue Department has decided to extend the filing deadline for 2024/25 Profits Tax Returns for 'D' cases (i.e. those with accounting dates falling between 1 December 2024 and 31 December 2024). The original due date of 15 August 2025 will be extended by two weeks to 29 August 2025. However, tax representatives are encouraged to submit the majority of returns before the extended deadline.

The Hong Kong Government will officially launch the 'Company Re-Domiciliation Regime' on May 23, 2025. This allows companies registered outside of Hong Kong to transfer their place of registration to Hong Kong while preserving their legal identity and business continuity, and re-register as Hong Kong companies under the Companies Ordinance (Chapter 622). **Purpose and Background** This regime aims to consolidate Hong Kong's position as an international business and financial center, providing companies with a flexible re-domiciliation pathway, particularly attracting multinational enterprises seeking to relocate from low or no-tax jurisdictions in response to the global minimum tax (BEPS 2.0). **Tax Arrangements and Impact** * **Tax Residency**: Re-domiciled companies will be considered corporations established in Hong Kong, meeting the definition of a Hong Kong tax resident, and can enjoy the benefits of double taxation agreements signed between Hong Kong and other jurisdictions. * **Profits Tax Liability**: * If a company was already operating in Hong Kong and generating taxable profits before re-domiciliation, it must pay profits tax on those profits. Re-domiciliation will not exempt this tax liability. * If a company was not operating in Hong Kong before re-domiciliation, it will not be subject to profits tax for the period before re-domiciliation. * **Transitional Tax Arrangements**: Schedule 17L has been added to the Inland Revenue Ordinance, stipulating that expenses incurred by re-domiciled companies before re-domiciliation may be deductible when calculating profits tax after re-domiciliation, provided certain conditions are met. **Other Key Points** * **Legal Amendments**: The 2025 Companies (Revision) (No. 2) Ordinance amended the Companies Ordinance and related legislation, including the Inland Revenue Ordinance, to implement the company re-domiciliation regime. * **Handling of Inventory**: Inventory acquired by re-domiciled companies before re-domiciliation and used in Hong Kong business after re-domiciliation, its cost or value on the date of re-domiciliation (whichever is lower) may be treated as a deductible item. For further information or to consult detailed information, please refer to the relevant pages on the Hong Kong Inland Revenue Department's official website.

The 2024/25 tax returns for individuals were issued on 2 May 2025. Taxpayers are required to file duly completed returns to the Inland Revenue Department (IRD) within 1 month from the date of issue of the returns. The deadline falls on 2 June 2025. For sole proprietors, returns should be filed within 3 months, i.e. on or before 2 August 2025.

The Accounting and Financial Reporting Council (AFRC) today announces its Strategic Priorities for 2025-2027, to support the discharge of its statutory function. The AFRC's strategic priorities for 2025-2027 are based on four key pillars: Regulation: Upholding the quality of financial reporting and audit, thereby safeguarding stakeholder and public interests. Governance: Cultivating a healthy environment based on high-quality financial reporting and audit through robust governance. Development: Promoting the development of the accounting profession by advocating sustainability, digital transformation, and talent management. Organisational Effectiveness: Driving effective outcomes through efficient processes. For details, please visit: https://www.afrc.org.hk/media/stsjhckc/afrc-strategic-priorities.pdf

Employers must complete and submit the 2025 Salary and Pension Tax Return on or before May 2, 2025.