Preliminary Edition of the IRD Taxonomy Package
The Inland Revenue Department (“the Department”) has been working at full steam to take forward the project on electronic filing (“e-filing”) of Profits Tax returns (“e-Filing Project”) by phases. The objective of the e-Filing Project is to enhance the efficiency, reliability and accuracy of the collection of accounting and financial data from businesses, thereby bringing about the benefits to taxpayers and tax practitioners such as minimising possible manual errors in tax filing, reducing the turnaround time for signature or authorisation arrangement and etc. It is our plan to launch voluntary e-filing of Profits Tax returns together with financial statements and tax computations in inline eXtensible Business Reporting Language (“iXBRL”) format in April 2023.
From January to March 2021, the Department conducted the first round of consultation with various interested parties to seek their views on the proposed IRD Taxonomy Package with a view to facilitating electronic submission of financial statements and tax computations in iXBRL format. The Department gathered comments and feedback from the interested parties during the first consultation and attempted to address the concerns in finalising the proposed IRD Taxonomy Package and developing IT proposals. From November 2021 to January 2022, the Department conducted the second round of consultation with various interested parties to seek their views on various computer-related supports to businesses in order to cope with the implementation and transition of the iXBRL filing requirement.
The Department encourages businesses or interested parties (e.g. software suppliers) to upgrade or develop their own computer programs which are capable of converting their existing financial statements into iXBRL format, creating iXBRL tax computations and generating the required iXBRL data files for e-filing purposes. The Department recognises that without knowledge of the IRD Taxonomy Package and schemas, it would be difficult for businesses to prepare the required iXBRL data files. As part of the consultation, a preliminary edition of the IRD Taxonomy Package, IRD Taxonomy Package Overview, IRD Taxonomy Files (including schemas) and IRD Taxonomy View Files are available for download / view for reference only.
Since 2019, the Department has been actively developing the IRD Taxonomy Package to facilitate Hong Kong businesses to submit their financial statements, tax computations with supporting schedules in iXBRL data file format in support of e-filing of Profits Tax returns through the designated platform. The IRD Taxonomy Package includes:
- IRD FS Taxonomy - the IRD Taxonomy for financial statements prepared in accordance with full Hong Kong Financial Reporting Standards (“HKFRSs”) as issued by the Hong Kong Institute of Certified Public Accountants [Preliminary edition illustrated in Excel];
- IRD FS-PE Taxonomy - the IRD Taxonomy for financial statements prepared in accordance with the Hong Kong Financial Reporting Standard for Private Entities (“HKFRS for Private Entities”) which is also applicable to enterprises adopting Small and Medium-sized Entity Financial Reporting Framework and Financial Reporting Standard [Preliminary edition illustrated in Excel]; and
- IRD TC Taxonomy - the IRD Tax Computational Taxonomy which covers major tax data, financial data and schedules to tax computations as specified by the Department [Preliminary edition illustrated in Excel].
The IRD Taxonomy Package lists and defines the specific codes (elements) for preparers to identify (tag) the information disclosed within financial statements prepared in accordance with full HKFRSs or HKFRS for Private Entities and tax computations. It also includes the content that describes the accounting meaning / relevant reference of an element or helps preparers find the correct element. Elements will be organised into distinct groups so that it is easier to navigate the IRD Taxonomy Package. The IRD Taxonomy Package does not drive or prescribe the content and presentation of financial statements and tax computations. Instead, it provides a means of tagging the financial and tax information or disclosures.
Please refer to the IRD Taxonomy Package Overview [Preliminary version] for more information.
The Department will keep updating and refining the IRD Taxonomy Package and related materials to reflect changes in tax legislation and full HKFRSs or HKFRS for Private Entities. The version to be released in April 2023 will be varied from the preliminary version.
The schemas can be downloaded here.
Your views are valuable to us. Should you have comments on or suggestions to the preliminary edition of the IRD Taxonomy Package and related materials, please send them to the e-mail address: email@example.com.
The IRD Taxonomy Package and related materials will be subject to changes. The actual content will prevail.
The materials are intended to provide general information and guidance on the subject concerned. They are only for reference and illustrative purposes and should not be relied upon for technical answers.
The Department takes no responsibility for any errors or omissions in, or for the loss incurred by individuals or companies due to the use of, the materials.
No claims, action or legal proceedings in connection with these materials brought by any individuals or companies having reference to the materials will be entertained.
The IRD Taxonomy Package and related materials contain copyright materials of the IFRS® Foundation in respect of which all rights are reserved.
Copyright © IFRS Foundation®. All rights reserved. Published under licence from the IFRS Foundation®. Reproduction and use rights are strictly limited.
XBRL is a trade mark of XBRL International which owns the copyright in the XBRL language.