In 2018, the government of Hong Kong introduced various tax incentives to foster economic development and took steps to align its tax system with the latest international tax standards. The tax legislation enacted in 2018 includes the following: A two-tiered profits tax rates;A transfer pricing regime;Enhanced deduction of research and development (R&D) expenditures;Environmental protection installations;Qualifying debt instruments;Preferential tax regimes (substantial activities requirements);Intellectual property rights purchase; andOpen-ended fund companies. To reflect these changes, the Inland Revenue Department (IRD) has revised the profits tax returns for corporations (BIR51), for persons other than corporations (BIR52), and in respect of non-resident persons (BIR54). The new BIR forms will be used starting from the year of assessment 2018/19. A set of supplementary for
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