Is your business ready for Hong Kong’s biggest tax digitalization overhaul in decades? With the Inland Revenue Department (IRD) launching three new tax portals and implementing mandatory e-filing requirements, staying compliant has never been more critical—or more complex. Whether you’re an individual taxpayer, business owner, or tax professional, understanding these sweeping changes is essential to avoid penalties and leverage the benefits of Hong Kong’s modernized tax ecosystem.

Hong Kong’s Tax Digitalization Revolution: What’s Changing?

Hong Kong’s Inland Revenue Department has embarked on a comprehensive digital transformation that fundamentally changes how taxpayers interact with tax authorities. The July 2025 launch of three specialized tax portals represents the most significant upgrade to the eTAX platform since its inception, creating a more efficient, user-friendly, and secure digital tax ecosystem.

The Three New Tax Portals: Your Gateway to Digital Compliance

On 22 July 2025, the IRD officially launched three interconnected portals designed to serve different taxpayer groups with specialized features:

Individual Tax Portal (ITP)

Designed for personal taxpayers, the ITP centralizes all aspects of individual tax management. Key features include:

• Seamless migration from existing eTAX accounts (no re-registration required)
• Pre-saved deduction details that automatically populate future returns
• Mobile accessibility through the eTAX mobile application
• Upload capability for up to 5 supporting documents (200MB total)

Business Tax Portal (BTP)

This multi-user platform revolutionizes corporate tax administration with:

• Multi-user access with role-based permissions for team collaboration
• Comprehensive e-filing services for Profits Tax returns
• Business registration and maintenance services
• e-Stamping facilities for stamp duty matters

Tax Representative Portal (TRP)

Specifically designed for tax professionals, the TRP offers:

• Team formation capabilities for collaborative client management
• Bulk filing capabilities for managing multiple tax returns
• Enhanced communication tools for IRD collaboration
• Comprehensive compliance tracking and deadline management

Mandatory E-Filing: Timeline and Requirements

The Inland Revenue (Amendment) (Miscellaneous Provisions) Ordinance 2021 established the legislative framework for mandatory e-filing, with implementation following a phased approach:

Phase 1: MNE Groups (Year of Assessment 2025/26)

The first phase requires all Hong Kong entities—including dormant and inactive entities—of in-scope multinational enterprise (MNE) groups to e-file Profits Tax returns for year of assessment 2025/26 and all subsequent years. Key requirements include:

• Applies to entities of MNE groups with filing obligations for years of assessment beginning on or after 1 April 2025
• Mandatory regardless of where the ultimate parent entity (UPE) is located
• “Once-in, always-in” mechanism: once mandated to e-file, the requirement continues for all subsequent years
• Profits Tax returns must be accompanied by supporting documents in iXBRL format

iXBRL Filing: The Technical Revolution

iXBRL (Inline eXtensible Business Reporting Language) represents a fundamental shift in how financial information is submitted to the IRD. This standardized format enables both human-readable presentation and machine-readable data processing.

Document Requirements for Mandatory E-Filers

• Financial Statements: iXBRL format (using IRD FS Taxonomy or IRD FS-PE Taxonomy)
• Tax Computations: iXBRL format with tagged financial and tax information
• S Forms and Other Forms: XML file format

IRD Taxonomy Package

The IRD has developed and published the IRD Taxonomy Package, which includes:

• IRD FS Taxonomy: For financial statements prepared in accordance with full Hong Kong Financial Reporting Standards (HKFRSs)
• IRD FS-PE Taxonomy: For financial statements prepared in accordance with HKFRS for Private Entities (also applicable to SME-FRF and SME-FRS)

Extended Deadlines and 2025 Filing Schedule

One of the most tangible benefits of e-filing through eTAX is the automatic one-month extension granted on all tax return deadlines. For the 2024/25 Year of Assessment, the IRD issued Individual Tax Returns on 2 May 2025.

Penalties and Consequences of Non-Compliance

Understanding the penalties for non-compliance is essential for maintaining good standing with the IRD and avoiding financial and legal consequences.

Late Filing Penalties

• Fixed Fine: Up to HKD 10,000 for late filing without reasonable excuse
• First Surcharge: 5% of tax due if filed more than 1 month late
• Second Surcharge: 10% of tax due if filed more than 6 months late

Non-Filing or Incomplete Filing

Failure to inform the IRD of chargeability without reasonable excuse renders a taxpayer liable to:

• Fixed fine of up to HKD 10,000 per offence
• Potential penalty of up to three times the tax involved for each offence

Actionable Compliance Checklist

To maintain compliance with Hong Kong’s evolving eTAX requirements, follow this comprehensive checklist:

1. Register for the appropriate portal: Determine whether you need the Individual Tax Portal (ITP), Business Tax Portal (BTP), or Tax Representative Portal (TRP) and register immediately.
2. Determine mandatory e-filing status: If you’re part of an MNE group, confirm whether you’re subject to Phase 1 requirements for Year of Assessment 2025/26.
3. Download and test iXBRL tools: Access the free IRD Data Preparation Tools and conduct test filings before mandatory deadlines.
4. Configure multi-user access: For businesses and tax representatives, set up role-based permissions in the BTP or TRP.
5. Establish “once-in, always-in” procedures: Create internal controls to ensure ongoing compliance with mandatory e-filing requirements.
6. Monitor IRD announcements: Stay informed about Phase 2 threshold details and implementation timelines.

Enhanced Platform Features You Should Know

Beyond the new portal launches, the IRD has introduced numerous platform enhancements that improve user experience, security, and functionality:

• Mobile-Responsive Design: The eTAX interface now automatically adjusts to desktops, tablets, and mobile devices.
• Pre-Saved Deduction Details: Taxpayers can now pre-save deduction details such as charitable donations (max 35% of assessable income) or Mandatory Provident Fund contributions (max HK$18,000/year).
• Enhanced Document Upload: Upload up to 5 supporting documents with a combined file size of up to 200MB directly through eTAX.
• Expanded IR56 E-Filing Capacity: Employers can now upload up to 5,000 records in a single submission.
• Digital Certificate of Resident Status: Starting from 10 November 2025, digital Certificates of Resident Status will be issued instead of paper certificates.

Hong Kong’s tax digitalization revolution is here, and staying ahead of these changes is no longer optional—it’s essential for compliance and competitive advantage. By embracing the new eTAX platforms, understanding mandatory e-filing requirements, and leveraging the enhanced digital tools available, taxpayers can navigate this transition successfully while minimizing compliance risks and maximizing efficiency. The time to prepare is now.