Hong Kong: Tax issues discussed in 2025 annual meeting between tax authority and accountants’ group
Including CbC reporting obligation in demerger cases
The minutes of the 2025 annual meeting between the Inland Revenue Department (IRD) and the Hong Kong Institute more of Certified Public Accountants (HKICPA) were published on March 27, 2026.
The minutes summarize the IRD’s views on various issues related to profits tax, international tax, salaries tax, and tax administrative matters. Key issues discussed include:
- Tax deduction of reinstatement costs of leased premises
- Issuance of Hong Kong certificates of resident status
- Tax exemption for charitable institutions
- Interaction between the foreign-sourced income exemption (FSIE) regime and other existing Hong Kong tax rules
- Deductibility of interest expense
- Country-by-country (CbC) reporting obligation in demerger cases
Read a March 2026 report prepared by the KPMG member firm in Hong Kong