In September 2020, the Hong Kong Inland Revenue Department (IRD) began conducting the first round of compliance reviews of the taxpayers’ transfer pricing documentation and issuing requests for information in accordance with Section 51 (4) A and 51 (4A) of the Inland Revenue Ordinance.
At present, the IRD is concentrating on soliciting information from taxpayers who have stated that they are required to prepare Hong Kong TPD in the Supplementary Form BIRS2 attached to their income tax returns for the 2018/19 assessment year.
Taxpayers must complete and submit Form IR1475 (regarding Master and Local file) who receive notice of a compliance review from the IRD.
