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.