Preliminary Edition of the IRD Taxonomy Package

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A project on electronic filing (“e-filing”) of Profits Tax returns (“e-Filing Project”) by phases has been launched by the Inland Revenue Department (“IRD”). The objective 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. The 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, IRD conducted the first round of consultation with various interested parties to seek their views on the proposed IRD Taxonomy Package. From November 2021 to January 2022, IRD conducted the second round consultation in order to cope with the implementation and transition of the iXBRL filing requirement. A preliminary edition of the IRD Taxonomy Package, IRD Taxonomy Package Overview, IRD Taxonomy Files (including schemas) and IRD Taxonomy View Files are now available for download / view for reference only.

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.

You may refer to the IRD Taxonomy Package Overview [Preliminary version] for more information.

 

Should you have any enquiries, please feel free to talk with us.

 

 

Source:  https://www.ird.gov.hk/eng/tax/ixbrl/IRD_Taxonomy_Package_Overview(Preliminary_Edition).pdf