The Hong Kong Inland Revenue Department (Amendment) (Miscellaneous Provisions) Bill was gazetted on March 19st, 2021. The Bill announced that the IRD intends to revise the statutory framework for furnishing tax returns, making it easier for corporations and partnerships to electronically file their Profits Tax Returns for any year of assessment from 2015/16 to 2020/21 and attach supplementary forms to Profits Tax Return S1, S2, S3 and S4.
The IRD is undertaking this project to enable more businesses to file their PTRs electronically, and as part of a wider plan to upgrade its IT infrastructure and optimize services to taxpayers in the following years.
The Bill is setting out a framework for e-filing, including roles and responsibilities, as well as liabilities of different parties. One of the expected improvements the Bill will bring to taxpayers is the streamlining of tax filing procedures, especially for SMEs.
While there are still some uncertainties regarding the implementation, this Bill shows that the IRD is taking serious steps in modernizing its IT infrastructure and enhancing the efficiency of the tax administration.
Contact our Hong Kong team for further assistance on tax-related issues.
