Publication date : 29 September 2026 

Source：The Government of the Hong Kong Special Administrative Region and the Inland Revenue Department

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The 2026 Policy Address proposes two tax measures relating to families and home purchases: increasing the child allowance for eligible children and introducing a stamp duty concession for qualifying families with newborn children. Taxpayers should review the effective dates, eligibility requirements and any subsequent refund procedures.

Key points ：

・From the year of assessment 2026/27, the proposed child allowance will increase from HK$140,000 to HK$160,000 for the second and subsequent children born on or after 16 September 2026  

・The additional child allowance for the first two years is also proposed to increase from HK$140,000 to HK$160,000 for those eligible children  

・The child allowance is a deduction from assessable income rather than a direct cash payment  

・A qualifying family with a newborn child may receive a residential property stamp duty concession capped at HK$20,000  

・The measures remain subject to legislative procedures, and final eligibility and application arrangements will be determined by the enacted legislation and IRD guidance

1、How the proposed child allowance increase works

On 16 September 2026, the HKSAR Government announced a proposal to increase the child allowance for second and subsequent children from the year of assessment 2026/27. Where the relevant child is born on or after 16 September 2026, the basic child allowance is proposed to increase from HK$140,000 to HK$160,000. The additional child allowance for the first two years is also proposed to increase from HK$140,000 to HK$160,000. Accordingly, the two allowances may together amount to up to HK$320,000 per year during the first two years, while the actual tax saving will depend on the taxpayer's assessable income and applicable tax rate.

The allowance is not a cash payment from the Government. It is deducted from assessable income when the taxpayer's tax liability is calculated. A first child born on or after 16 September 2026 does not automatically qualify for the increased amount under this proposal. Similarly, a second child born before that date would not qualify for the increased amount on a retrospective basis. Taxpayers should verify the child's date of birth, birth order and relevant year of assessment when filing the tax return, and retain supporting documents.

2、Conditions for the proposed newborn-family stamp duty concession

The Government has also proposed a stamp duty concession for qualifying families with newborn children who acquire a residential property, subject to a cap of HK$20,000. The announced policy direction includes the following conditions: the child must be born in Hong Kong on or after 16 September 2026; at least one parent must be a Hong Kong permanent resident; the residential property must be acquired within one year before or two years after the child's birth; and the parent must enter into the transaction on the parent's own behalf. A family should not assume that the concession applies solely because a child has been born. The transaction date, property type, buyer's identity and other statutory conditions must be checked individually.

Before the amendment legislation comes into effect, qualifying purchasers will generally still be required to pay stamp duty at the prevailing rate. After the legislation is enacted, an eligible applicant may apply for a refund of any excess amount paid, subject to the procedures announced by the IRD. Families planning to purchase a home should therefore retain the sale and purchase agreement, completion documents, stamp duty receipts, birth certificate and evidence of Hong Kong permanent-resident status.

3、Practical preparation for taxpayers and business owners

First, families should maintain a tax-document checklist covering birth certificates, birth-order information, spouse-claim arrangements and prior tax returns, so that the child allowance is not claimed incorrectly. Second, families planning to purchase a residential property should confirm the buyer's identity, the property's use and the transaction date before signing a provisional agreement, and should include the possible stamp duty payment in their cash-flow budget. Third, business owners and high-net-worth individuals with employment income, salaries tax, profits tax distributions, property investments or cross-border family arrangements should review personal deductions, company funds and the source of the property purchase funds together, reducing the risk of delayed claims or refunds caused by incomplete records.

As both measures remain subject to legislative amendments and further IRD guidance, taxpayers should not make irreversible financial decisions solely on the basis of the general wording in the Policy Address. For formal filing purposes, the enacted legislation, tax return forms and latest IRD instructions should prevail.

💡Professional tip：

Eligible families and business owners should organise their birth, identity, tax and property documents early and complete a tax review before filing a return or signing property documents. Our advisers can assist with assessing child allowance claims, stamp duty refund eligibility and related cash-flow arrangements.

🏷️ Our services：

• Individual tax return preparation and child allowance claims

• Salaries tax, profits tax and family tax planning

• Review of newborn-family residential stamp duty concession and refund eligibility

• Organisation of funds-flow and tax documents relating to property purchases and investments

• Integrated tax advisory services for family businesses and high-net-worth individuals

Official sources：

https://www.info.gov.hk/gia/general/202609/16/P2026091600265.htm

https://www.ird.gov.hk/chi/tax/policyaddress2026.htm

https://www.ird.gov.hk/chi/faq/policyaddress2026.htm

https://www.ird.gov.hk/chi/faq/newbornconcession.htm

The entry into force and application of the agreement are subject to the formal ratification procedures and applicable legislation. 

Please contact our professional advisers for advice on your specific cross-border arrangements.

Publication date : 23 September 2026 

Source：Commerce and Economic Development Bureau and Trade and Industry Department, HKSAR Government

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Hong Kong and ASEAN have signed the First Protocol amending their Investment Agreement. It is intended to provide clearer non-discriminatory treatment and investment protection for Hong Kong businesses in the ten ASEAN member states, but the relevant reservations and treatment will apply only after the required procedures are completed and the Protocol enters into force.

Key points ：

・The Protocol incorporates the parties’ schedules of reservations into the Hong Kong–ASEAN Investment Agreement  

・It provides the basis for the National Treatment and Most-Favoured-Nation Treatment provisions to take effect, improving legal certainty for investors  

・The Investment Agreement complements the services commitments under the Hong Kong–ASEAN Free Trade Agreement  

・ASEAN has been Hong Kong’s third-largest destination for outward direct investment for four consecutive years, with an investment stock of HK$671.2 billion

1、How the Protocol may improve the investment environment for Hong Kong businesses

On 20 September 2026, the HKSAR Government announced the signing of the First Protocol amending the Investment Agreement between Hong Kong and ASEAN. The Protocol mainly incorporates the parties’ schedules of reservations into the existing agreement, providing the basis for the National Treatment and Most-Favoured-Nation Treatment provisions to be implemented. In practical terms, except for measures reserved in the schedules, the parties should in principle provide enterprises and investments from other parties with treatment no less favourable than that accorded to local or foreign enterprises. This is intended to improve legal certainty for Hong Kong businesses investing in ASEAN markets.

The agreement also covers fair and equitable treatment, physical protection and security of investments, and the free transfer of investments and returns. Where an investment suffers loss as a result of expropriation, war or armed conflict, compensation may be provided according to the standards agreed under the Investment Agreement. The Protocol was signed in Manila by representatives of Hong Kong, the Philippines and Thailand, followed by the 10th ASEAN Economic Ministers–Hong Kong, China Consultation co-chaired by Hong Kong and the Philippines, the ASEAN Chair for 2026. The signing date should not, however, be treated as the date on which all protections become fully effective.

2、Businesses should look beyond the Investment Agreement

An investment agreement deals primarily with investment treatment and protection. It does not automatically grant a licence, provide a tax incentive or exempt a business from local regulation. Before establishing a subsidiary, joint venture or distribution arrangement, a Hong Kong business should review the target country’s foreign-investment restrictions, sector licences, corporate and banking arrangements, intellectual-property requirements, employment compliance and profit-repatriation procedures. It should also assess tax-residence status, permanent-establishment exposure, withholding tax and transfer-pricing implications in Hong Kong and the relevant ASEAN jurisdiction. Investment protection cannot replace local tax filings, licensing applications or anti-money-laundering requirements.

The Hong Kong–ASEAN Free Trade Agreement contains National Treatment commitments for services and service suppliers in specified sectors, including services supplied through commercial presence. The amended Investment Agreement is intended to complement those commitments by covering enterprises and investments in non-services sectors. Businesses should therefore first identify whether their proposed activity involves services, physical assets, manufacturing, logistics, retail, financial arrangements or a combination of these, and then determine the relevant treaty, local-law and tax-review scope.

The ten ASEAN member states are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. The extension of the Free Trade Agreement and Investment Agreement to Timor-Leste remains subject to ASEAN’s internal procedures. Businesses entering a new ASEAN market should review the reservations applicable to the specific country and sector rather than relying on a general assumption that all ASEAN treatment is identical.

3、Practical preparation checklist for Hong Kong businesses

First, prepare an investment decision file setting out the investment vehicle, ownership percentage, source of funds, board approval, expected returns and exit plan. Second, connect local operating contracts, invoices, payments, inventory and staffing arrangements with the Hong Kong group’s accounting records so that the substance of the transaction and the movement of funds can be traced. Third, before investing, assess Hong Kong and local profits tax, withholding tax, permanent-establishment and transfer-pricing risks, and identify the banking and tax documents required for future profit repatriation.

For joint ventures or franchise arrangements, the shareholders’ agreement and service agreements should clearly address decision-making rights, brand and intellectual-property use, related-party transactions, cost allocation and dispute resolution. These records can support the protection of investment interests as well as bank due diligence, audit work, business valuation and cross-border tax filings.

💡Professional tip：

An investment agreement is a risk-management tool, not a shortcut around local legal and tax due diligence. Before signing investment or joint-venture documents, Hong Kong businesses should review the structure, funding flows and exit arrangements, and confirm the available treatment against the final text once the Protocol enters into force.

🏷️ Our services：

• Hong Kong–ASEAN investment structuring and tax planning

• Overseas subsidiary, joint-venture and funds-flow compliance review

• Permanent-establishment, withholding-tax and transfer-pricing analysis

• Pre-investment financial due diligence, management accounts and business valuation

• Review of joint-venture agreements, related-party transactions and cross-border funds-flow records

Official sources：

https://www.info.gov.hk/gia/general/202609/20/P2026092000405.htm

https://www.tid.gov.hk/tc/index.html

This article is compiled from publicly available information issued by the HKSAR Government and the Inland Revenue Department for general reference only. It does not constitute tax, accounting or legal advice. 

The entry into force and application of the agreement are subject to the formal ratification procedures and applicable legislation. 

Please contact our professional advisers for advice on your specific cross-border arrangements.

Publication date : 4 September 2026 

Source：Hong Kong Special Administrative Region Government, Financial Services and the Treasury Bureau; Inland Revenue Department (IRD)

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Hong Kong and Slovenia have signed a comprehensive avoidance of double taxation agreement (CDTA). The agreement clarifies taxing rights and withholding-tax limits for Hong Kong–Slovenia transactions, but it is not yet in force pending completion of the ratification procedures.

Key points ：

・This is Hong Kong’s 60th CDTA  

・The treaty maximum withholding-tax rate on dividends paid by Slovenia to Hong Kong residents is 10%, compared with a current domestic maximum of 25%  

・The treaty maximum rate is 5% for interest and royalties; qualifying Hong Kong residents may claim foreign tax credit relief subject to the agreement and the Inland Revenue Ordinance

1、What the agreement means for Hong Kong–Slovenia transactions

On 4 September 2026, the HKSAR Government announced the signing of a CDTA with Slovenia. A CDTA allocates taxing rights over cross-border income and provides mechanisms to relieve double taxation. Under the published terms, the maximum Slovenian withholding-tax rates on dividends, interest and royalties paid to Hong Kong residents are 10%, 5% and 5% respectively. These are treaty ceilings, not automatic rates for every payment. The applicable treatment will depend on the agreement coming into force, the nature of the income, the recipient’s tax-residence status and other conditions under the treaty. Hong Kong residents may claim a credit for tax paid in Slovenia against Hong Kong tax on the same income, subject to the Inland Revenue Ordinance and the treaty provisions.

2、Practical preparation for businesse

Hong Kong companies with Slovenian subsidiaries, Slovenian-source interest or royalty income, or planned dividend distributions should organise their tax-residence information, payment agreements, beneficial-ownership analysis and evidence of business substance. The group structure should also be checked against actual management and operating activities. Once the CDTA enters into force, access to a lower withholding-tax rate may still require residence certificates and other supporting documents. Where tax has already been withheld, the company should retain tax-payment evidence and the documents supporting any foreign tax credit claim. Hong Kong profits-tax filings, foreign-tax relief and transfer-pricing records should be reviewed together so that the company does not focus on the headline rate while overlooking income classification, beneficial ownership or anti-avoidance requirements.

💡Professional tip：

Signing does not mean immediate effectiveness. Until the agreement enters into force, businesses should not calculate payments using the new treaty rates. Confirm the effective date, applicable accounting period and documentary requirements before updating payment procedures or tax computations.

🏷️ Our services：

• Hong Kong–Europe cross-border tax planning and CDTA analysis

• Withholding tax, foreign tax credit and profits-tax support

• Group-structure, beneficial-ownership and transfer-pricing review

• Tax-residence documentation, payment records and cross-border tax files

Official sources：

https://www.info.gov.hk/gia/general/202609/04/P2026090400547.htm 

https://www.ird.gov.hk/eng/pdf/Agreement_Slovenia_HongKong.pdf

This article is compiled from publicly available information issued by the HKSAR Government and the Inland Revenue Department for general reference only. It does not constitute tax, accounting or legal advice. 

The entry into force and application of the agreement are subject to the formal ratification procedures and applicable legislation. 

Please contact our professional advisers for advice on your specific cross-border arrangements.

Release Date: 2 September 2026

Source: Securities and Futures Commission of Hong Kong (SFC)

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The SFC’s Quarterly Report for the second quarter of 2026 shows that Hong Kong’s capital markets remained active despite volatility in global markets. Continued net inflows through Stock Connect, growing Swap Connect activity and a strong IPO market underline Hong Kong’s role as a gateway between Mainland and international capital.

1、Deeper market connectivity and growing RMB activity

The report notes that Stock Connect recorded net inflows for 34 consecutive months, demonstrating continued investor interest in Hong Kong equities from Mainland and international investors. Swap Connect activity also continued to grow, with average daily turnover reaching RMB 28.4 billion in the second quarter, approximately 50% higher than a year earlier. For businesses and investors, the expanding Mainland-Hong Kong connectivity provides additional market tools for RMB asset management, cross-border financing and risk management.

2、Active IPO and fund management markets

The IPO market remained active during the quarter, with fundraising rising 12% year on year to approximately HK$100 billion. Nine A-share listed companies listed in Hong Kong through H shares, highlighting Hong Kong’s continuing importance as a platform for Mainland companies seeking international fundraising and greater capital-market visibility. As at the end of June 2026, assets under management of fund managers registered in Hong Kong reached approximately RMB 2.5 trillion, an increase of 22% year on year. Increased capital-market activity also means that companies need to devote more resources to listing preparation, financial disclosure, internal controls and compliance.

3、Practical implications for companies and high-net-worth individuals

Companies considering a Hong Kong listing or fundraising should begin organising audited financial statements, group structure information, business and revenue records, and reviewing whether their internal controls and financial data can support the relevant requirements. Businesses and high-net-worth individuals with RMB assets, Mainland-Hong Kong funding arrangements or cross-border investments may monitor the development of Swap Connect and RMB interest-rate products. Before making an investment or financing decision, however, they should assess liquidity, foreign-exchange, interest-rate and regulatory risks. Mainland-listed companies and businesses planning to access overseas capital markets should also understand Hong Kong listing rules, continuing disclosure obligations and the professional support required.

💡Professional insight: 

An active capital-market window does not mean that a company can complete listing preparation at short notice. We recommend carrying out an early health check of financial statements, group structure, tax position and internal controls to identify information gaps that could delay financing or listing plans.

🏷️Our Services 

• Pre-listing and pre-financing financial statements and audit coordination

• Business valuation, financial due diligence and management reporting

• Mainland-Hong Kong cross-border tax planning and group-structure review

• Listing rules, continuing disclosure and financial-governance advisory

Reference: 

https://apps.sfc.hk/edistributionWeb/gateway/TC/news-and-announcements/news/doc?refNo=26PR129

The content of this article is compiled from publicly available information and is for reference purposes only. It does not constitute any professional advice or recommendation. 

For further enquiries regarding taxation or business arrangements, please feel free to contact our professional advisors. 

Release Date: 15 August 2026 

Source: Hong Kong Institute of Certified Public Accountants (HKICPA) 

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The Hong Kong Institute of Certified Public Accountants has put forward recommendations across seven areas for Hong Kong’s first five-year plan. The recommendations highlight alignment with the national Fifteenth Five-Year Plan, the role of the accountancy profession, and Hong Kong’s continued development as an international financial centre. 

 For businesses, the broader message is clear: stronger financial governance, cross-border compliance and reliable decision-making data should be developed early rather than treated as year-end compliance exercises. 

1、A five-year plan is more than a policy signal 

Hong Kong’s first five-year plan is expected to provide a clearer strategic framework for future development. Businesses seeking to expand into Mainland China, attract investment, obtain financing, restructure group operations, or establish family office and corporate treasury arrangements will need reliable financial information, sound audit records and effective tax compliance. 

The role of the accountancy profession extends beyond annual audits and tax filings. Timely, accurate and traceable management accounts can help businesses assess cash flow, profit drivers, financing capacity, project returns and operational risks, while supporting strategic decision-making. 

2、Moving from compliance to financial governance 

Businesses should not wait until tax filing or the annual audit to organise their accounting records. Management should establish regular financial reporting processes and maintain visibility over revenue, costs, receivables, inventory, borrowings, directors’ accounts and related-party transactions. 

For businesses with Mainland China or overseas operations, contracts, invoices, payments, delivery records and accounting treatment should be consistent. Well-maintained records can reduce tax and audit risks while preparing the business for financing, investment, valuation or a future sale. 

3、Cross-border growth requires earlier tax and structural planning 

As Hong Kong continues to serve as a platform for businesses entering and expanding beyond China, cross-border businesses may face more complex issues involving tax residence, permanent establishments, related-party transactions, profit allocation and information exchange. 

Businesses with Mainland subsidiaries, offshore holding companies, cross-border service arrangements or intra-group financing should periodically review whether their structure reflects their actual operating model. Tax implications should be considered before share restructurings, new investment, profit repatriation, intellectual property arrangements or executive secondments. 

4、Digitalisation and sustainability data are becoming business fundamentals 

Future competitiveness will depend not only on revenue growth, but also on how effectively a business manages financial and non-financial information. Cloud accounting, e-invoicing, budgeting tools and data analytics can improve efficiency, but they should be supported by sound approval, review, access-control and data-backup processes. 

For businesses involved in financing, exports, supply chains or serving major corporate customers, environmental, social and governance (ESG) information is increasingly becoming part of commercial communication and risk management. Businesses can start by organising data on energy use, suppliers, employment policies and internal governance. 

💡Professional insight: 

A five-year plan provides a long-term direction. Businesses do not need to wait for specific measures before acting. Building management-accounting discipline, conducting tax health checks and maintaining cross-border business records early can create greater flexibility during financing, expansion, tax reviews or business transformation. 

🏷️Our Services 

• Management accounts, financial statements and audit arrangements 

• Hong Kong, Mainland China and cross-border tax compliance and planning 

• Corporate restructuring, pre-financing financial reviews and business valuation 

• Company secretarial, internal-control and financial-governance advisory services 

Reference: 

https://mp.weixin.qq.com/s/1qDmSw-D67-o1ZwI1ijI3g

The content of this article is compiled from publicly available information and is for reference purposes only. It does not constitute any professional advice or recommendation. 

For further enquiries regarding taxation or business arrangements, please feel free to contact our professional advisors. 

Release Date: 4 August 2026 

Source: Inland Revenue Department (IRD), Financial Services and the Treasury Bureau 

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Hong Kong is progressing legislation to implement the Crypto-Asset Reporting Framework (CARF), an international tax-transparency standard issued by the Organisation for Economic Co-operation and Development (OECD) in 2023. CARF is designed to enable participating jurisdictions to exchange tax information on crypto-asset transactions in a standardised manner. 

 The Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 was gazetted on 22 May 2026 and introduced into the Legislative Council for first reading on 3 June 2026. As at the publication date, the proposed requirements remain subject to the passage of the Bill. 

1、CARF is a reporting framework, not a new tax 

CARF does not itself determine whether income from crypto-assets is subject to Hong Kong Profits Tax or another tax. Its primary purpose is to require qualifying crypto-asset service providers to collect and report customer and transaction information to the Inland Revenue Department (IRD). 

The Government proposes that CARF will commence on 1 January 2027, with the first automatic exchange of crypto-asset transaction information expected in 2028, subject to the relevant legislation and the implementation progress of partner jurisdictions. Businesses and high-net-worth individuals should therefore expect greater visibility of transaction history, asset provenance, tax residence and supporting accounting records. 

2、Who may be within scope? 

A person or entity may be a reportable crypto-asset service provider where it carries on a business of providing, for or on behalf of customers, exchange transactions between crypto-assets and fiat currencies, or between different crypto-assets, and is able to obtain the required customer due-diligence information. 

Examples include: 

• Crypto-asset exchanges and trading platforms 

• OTC dealers and brokers 

• Dealers purchasing crypto-assets in their own name for resale to customers 

• Crypto-asset ATM operators 

• Entities arranging crypto-asset trades or resales for customers 

A family office, investment company or group treasury centre that only manages its own assets will not necessarily be a reportable service provider. However, a detailed assessment is required where it provides trading, exchange or intermediary services to clients or third parties as part of a business model. 

3、Information reporting and due diligence 

A reportable crypto-asset service provider will generally be required to obtain a self-certification from each new customer to identify the customer’s tax residence and assess whether the information is reasonable. For pre-existing customers, the proposed rules generally require the self-certification to be obtained within 12 months after CARF is implemented in the relevant jurisdiction. 

Reportable information may include: 

• The service provider’s name, address and identification details 

• The name, address, tax residence and tax identification number of users or controlling persons 

• Date and place of birth, where applicable 

• Details of transactions in each category of crypto-asset 

• Aggregate amounts or fair market value of acquisitions, disposals and transfers 

• Number of units and number of transactions 

Relevant transactions include exchanges between crypto-assets and fiat currencies, exchanges between crypto-assets, and specified transfers to external wallets. Central bank digital currencies, specified electronic money products and certain crypto-assets demonstrably unavailable for payment or investment purposes may be excluded from the relevant crypto-asset scope. 

4、Hong Kong nexus, registration and record keeping 

A service provider may have a Hong Kong nexus if it is a Hong Kong tax resident, incorporated or organised in Hong Kong, managed in Hong Kong, or maintains a permanent establishment in Hong Kong. 

Under the proposed rules, a service provider with a Hong Kong nexus would be required to register on the CARF portal, even if it has no reportable information for a particular year. Registration would generally be due by 31 January of the calendar year following the first year in which the relevant nexus arises. 

The provider would also need to retain evidence supporting its due-diligence procedures and records demonstrating the accuracy of its reported information. These records would generally need to be retained for six years after the filing deadline of the relevant CARF return. 

5. Practical steps for businesses and investors

Businesses should consider the following actions now:

• Determine whether any activity constitutes a business of crypto-asset exchange, dealing or intermediation 

• Map operating entities, management locations and permanent establishments across Hong Kong, Mainland China and other jurisdictions 

• Establish procedures for collecting and updating customer tax-residence self-certifications 

• Reconcile exchange accounts, wallet records and accounting ledgers 

• Review the accounting and tax treatment of trading gains, mining, staking, airdrops and token-based payments 

• Prepare systems, governance and staff resources for future reporting, audit and cross-border information exchange 

💡Professional insight: 

CARF reporting does not replace a taxpayer’s normal tax-filing obligations. Businesses should ensure that wallet movements, transaction records, financial statements and tax positions are consistent. Cross-border holdings, family trusts, overseas platforms and corporate wallets should be reviewed before the proposed rules take effect. 

🏷️Our Services 

• CARF applicability and readiness assessment for crypto-asset service providers 

• Review of crypto-asset transaction and portfolio records 

• Cross-border tax planning for companies, family offices and trusts 

• Accounting, Profits Tax analysis and reporting support for crypto-asset income 

The content of this article is compiled from publicly available information and is for reference purposes only. It does not constitute any professional advice or recommendation. 

For further enquiries regarding taxation or business arrangements, please feel free to contact our professional advisors. 

Release Date: 16 July 2026 

Source: Inland Revenue Department (IRD), Hong Kong 

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Dear Clients, 

        The Inland Revenue Department (IRD) issued a Circular Letter to Tax Representatives on 14 July 2026 announcing an extension of the filing deadlines for D Code Profits Tax Returns under the Block Extension Scheme for the Year of Assessment 2025/26. 

        This arrangement aims to assist businesses and tax practitioners in adapting to the latest tax compliance requirements. 

1、Applicable Cases 

The extension applies to: 

Companies with accounting dates falling between 1 December 2025 and 31 December 2025 ("D" Code Cases).

2、Revised Filing Deadlines 

Paper Filing 

Original Due Date: 17 August 2026              Extended Due Date: ✅ 31 August 2026 

Electronic Filing (e-Filing) 

Original Due Date: 17 September 2026        Extended Due Date: ✅ 2 October 2026 

3、Matters Requiring Attention 

Businesses are encouraged to: 

• Arrange annual audits at an early stage

• Prepare financial statements and tax computations in advance 

• Review supplementary forms and supporting documents 

• Allow sufficient time for filing and review procedures 

Although additional filing time has been granted, businesses are advised to complete their preparation work as early as possible to avoid last-minute submission pressure. 

4、Our Professional Advice 

If your company falls within the D Code category, we recommend consulting your accountant or tax adviser promptly to review the progress of your audit and tax filing work, ensuring timely submission and compliance with the latest tax requirements. 

🏷️Our Services 

• Preparation and Submission of Profits Tax Returns 

• Financial Statement Preparation and Audit Coordination 

• Tax Computation and Compliance Review 

• IRD Enquiry Handling and Follow-up 

• Tax Planning and Advisory Services 

The content of this article is compiled from publicly available information and is for reference purposes only. It does not constitute any professional advice or recommendation. 

For further enquiries regarding taxation or business arrangements, please feel free to contact our professional advisors. 

Release Date: 27 June  2026 

Source: Inland Revenue Department (IRD), Hong Kong 

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The Inland Revenue Department (IRD) has recently published the 2025/26 Profits Tax Return Filing Tips, reminding businesses to complete their Profits Tax Returns accurately and submit all required supporting documents in accordance with the latest requirements to avoid delays in the assessment process. 

Key Highlights: 

・Ensure profits tax returns are completed accurately and in full 

・Submit all applicable supplementary forms as required 

・Financial statements and tax computations should be submitted together 

・Supplementary forms must be filed electronically where applicable 

・Missing information or supporting documents may delay tax assessment 

1、Submit Complete Supporting Documents 

The IRD reminds taxpayers that where assessable income has been earned during the relevant year of assessment, the profits tax return should be accompanied by the relevant financial statements, tax computations and supporting documents. All applicable supplementary forms should also be submitted as required .

Businesses are encouraged to prepare the necessary information in advance to ensure completeness and consistency in their tax filings. 

2、Pay Attention to Business Classification and Financial Information 

Taxpayers should ensure that the correct Hong Kong Standard Industrial Classification (HSIC) code is reported and that the information disclosed is consistent with the financial statements. All tax and financial information should be presented in Hong Kong dollars. 

Companies involved in cross-border transactions, capital expenditures, tax incentives or other special arrangements should review their supporting records carefully before filing. 

3、Electronic Filing Continues to Expand 

The IRD continues to promote electronic tax filing. Certain supplementary forms are required to be submitted electronically. Businesses should familiarize themselves with the latest filing requirements and ensure that electronic documents are prepared in the prescribed format. 

Making use of electronic filing services can improve efficiency and reduce filing errors. 

4、Common Filing Errors to Avoid 

・Incomplete tax return information 

・Failure to submit required supplementary forms 

・Inconsistencies between financial statements and tax return disclosures 

・Use of incorrect year-of-assessment forms 

・Failure to provide required supporting documents 

Such issues may result in additional enquiries from the IRD and delay the assessment process. 

Professional Insight : 

・As Hong Kong continues to enhance its tax compliance framework and digital filing initiatives, businesses should maintain robust accounting records and establish effective tax management procedures to meet evolving compliance requirements. 

・For companies involved in cross-border operations, group structures, tax incentive arrangements or complex transactions, proactive tax planning and periodic compliance reviews can help minimize tax risks and improve filing efficiency. 

The content of this article is compiled from publicly available information and is for reference purposes only. It does not constitute any professional advice or recommendation. 

For further enquiries regarding taxation or business arrangements, please feel free to contact our professional advisors. 

Release Date: 31 May 2026 

Source: HKICPA Technical Seminar 

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With the official implementation of the VAT Law of the People's Republic of China and its Implementation Regulations, tax administration in China has entered a new phase of greater standardization and legal certainty. 

At a recent seminar organized by the Hong Kong Institute of Certified Public Accountants (HKICPA), Ms. Tang Ye, Tax Partner of Deloitte China, provided an in-depth analysis of the key changes under the new VAT regime, including the scope of taxable transactions, input VAT credit rules, tax administration requirements, export tax refund policies, and practical implications for businesses. 

Key Highlights: 

・Clarification of the scope of VAT and taxable transactions 

・Enhanced requirements for input VAT credit management 

・Optimization of tax incentives and administration procedures 

・Further standardization of export VAT refund and exemption arrangements 

・Higher standards for tax compliance and internal controls

1、A More Comprehensive VAT Legal Framework 

The new VAT Law establishes a unified legal framework covering tax rates, taxable amounts, tax incentives, tax administration, and other key provisions. 

Businesses are encouraged to review their existing business models and transaction structures to assess the potential tax implications under the new rules. 

2、Greater Importance of Input VAT Credit Management 

The new legislation provides clearer requirements regarding deductible VAT supporting documents, including: 

・VAT Special Invoices 

・Customs Import VAT Payment Certificates 

・Tax Payment Certificates 

・Agricultural Product Purchase Invoices 

・Agricultural Product Sales Invoices 

・Other qualified tax deduction documents 

Companies should strengthen invoice management procedures and internal controls to ensure compliance. 

3、Changes to Export VAT Refund and Exemption Policies 

The new VAT framework introduces important updates to export VAT refund and exemption arrangements. 

Businesses engaged in cross-border trade and export activities should review their existing tax processes and refund procedures to ensure compliance with the latest requirements. 

4、Higher Expectations for Corporate Tax Governance 

The implementation of the new VAT Law raises compliance expectations in several key areas: 

・Output VAT recognition and reporting 

・Deemed taxable transactions 

・Input VAT deduction assessments 

・End-to-end export tax refund management 

・Tax documentation retention and risk control 

Companies should proactively evaluate the impact of the new regulations and strengthen their tax governance framework. 

Risk Reminder: 

・As the new VAT Law takes effect, tax management is evolving from a filing-focused approach toward comprehensive risk management. 

・Businesses involved in cross-border transactions, R&D services, intra-group financing arrangements, and export activities are advised to conduct periodic tax health checks to identify and mitigate potential compliance risks. 

The content of this article is compiled from publicly available information and is for reference purposes only. It does not constitute any professional advice or recommendation. 

For further enquiries regarding taxation or business arrangements, please feel free to contact our professional advisors. 

Figure 2: Changes in SME Financial and Debt Repayment Conditions 

Dear Valued Client,

The Inland Revenue Department of Hong Kong has officially issued the 2025/26 Employer’s Return (BIR56A) on 1 April 

2026 for the year of assessment from 1 April 2025 to 31 March 2026.

To ensure your company’s tax compliance and avoid late filing risks, please note the following important matters:

1. Filing Deadline

Statutory deadline: 1 May 2026

(Within one month from the date of issue. Late submission may result in penalties and surcharges.)

2. Key Filing Requirements

• Regardless of whether your company has employees or has paid remuneration, the BIR56A must still be submitted 

on time.

• Relevant IR56B forms must also be submitted to report the remuneration details of all employees, including full-time 

staff, part-time staff, directors, and temporary employees.

• Late filing may constitute a violation of the Inland Revenue Ordinance and may affect the company’s compliance 

   record and credit standing.

3. Recommended Filing Method

Electronic filing via the IRD’s “eTAX” platform is recommended for a more efficient and convenient submission    

process,  with instant confirmation of filing status.

4. Our Assistance Services

Our firm can provide full support services, including:

• Preparation and submission of BIR56A and IR56B forms

• Assistance with replacement applications for lost or missing tax returns

• Filing extension assistance

• General tax enquiry support and consultation services

✧ 2026 Start of the New Year ✧

Wishing everyone Progress in the New Year Business Prosperity!

In the new year, may we forge ahead full of vigor

We will continue to walk alongside you

Let’s create a new chapter of success together!

In 1963, Jensen Huang was born in Tainan, Taiwan, into an ordinary family.

His father was an engineer, and his mother was a teacher.

At the age of five, his family moved to Thailand. By nine, he was sent to the United States for school.

At the time, he spoke no English at all. Life at the boarding school was far from easy — he cleaned toilets, did his own laundry, and learned to survive in a completely unfamiliar environment.

That experience shaped a lifelong instinct in him: no matter where life throws you, find a way to survive and move forward.

Later, he studied electrical engineering, earning his bachelor’s degree from Oregon State University before completing a master’s degree at Stanford University.

Back then, computer engineering was still considered a niche field.

Nobody knew what the future of computing would look like — but he had a feeling that this industry was going somewhere big.

▋1993 — A Breakfast Meeting That Changed Everything

At thirty years old, Huang sat in a restaurant with two fellow engineers discussing the future.

Over burgers and coffee, they sketched an idea on paper napkins: a new kind of chip that could revolutionize graphics processing.

That year, they founded NVIDIA with only $600 in capital.

The market was already dominated by giants like ATI and 3dfx. Few believed the company had any chance of survival.

But Huang understood something others did not:

Speed, graphics quality, and computing power would become the soul of gaming.

He bet on “visual computing,” not just “computers.”

That small distinction would eventually change the entire tech industry.

▋Thirty Days From Collapse

In the early days, NVIDIA nearly went bankrupt.

By 1997, the company reportedly had only enough cash left for one more month of payroll.

Investors pulled out. Products struggled to sell. Employees constantly wondered whether the company could survive.

But Huang wasn’t focused on failure — he was focused on how the next chip could win.

That chip became the RIVA 128.

When it launched, sales surged, pulling NVIDIA back from the edge of collapse.

The experience taught him a critical lesson about business survival:

The most dangerous moments are often the beginning of a new direction.

▋From Gaming to AI

In 1999, NVIDIA introduced the GeForce 256 — the world’s first GPU.

It enabled computers to process massive amounts of graphics simultaneously, ushering in the golden age of 3D gaming.

But Huang did not stop there.

In 2006, NVIDIA launched CUDA technology, allowing GPUs to move beyond gaming into large-scale data computing.

That single decision planted the seeds of the AI revolution.

Many people believe NVIDIA succeeded because AI became popular.

The truth is: Huang had been preparing for that future more than a decade earlier.

When deep learning exploded in 2012, NVIDIA’s chips suddenly became the most sought-after hardware in the world.

Behind ChatGPT, Tesla, Google, and Amazon, NVIDIA GPUs were quietly powering the future.

At that moment, Jensen Huang transformed from “the gaming graphics guy” into “the man building the heart of AI.”

▋From Engineer to Strategist

Huang has never been a typical CEO.

He speaks calmly, wears his signature black leather jacket, and carries a quiet, understated presence.

But he possesses a rare ability:

To see the next structure hidden inside chaos.

While others focused on making chips, he focused on building platforms.

He transformed NVIDIA from a hardware company into an ecosystem integrating software, developer tools, and AI infrastructure.

▋The Dream Builder of an AI Empire

Today, NVIDIA’s market value exceeds two trillion dollars, making it one of the most influential technology companies in the world.

Yet Huang still insists on attending weekly technical meetings and personally participating in product decisions.

From a young immigrant washing dishes to the man giving AI its heartbeat, his story feels like a message to every underestimated dreamer.

✦

True leaders are the ones who prepare for the future before the world sees it coming.

Jensen Huang became legendary not because he followed trends — but because he helped create them.

You may not build computer chips, but you can learn from his ability to think ten years ahead.

Sometimes, the world is not lacking opportunities.

It is only lacking someone brave enough to begin.