Improving Tax Services and Optimising the Business Environment:Insights from the Experience of Hong Kong SAR,China

To keep pace with the global trend of digital transformation,the Inland Revenue Department of Hong Kong SAR,China(HKIRD)has embarked on its digital transformation journey to upgrade its information technology(IT)infrastructure and pave the way for full adoption of electronic filing(e-filing)of profits tax returns for businesses(the e-filing project).The e-filing project was implemented in phases starting from June 2020 and expects full implementation by June 2025.The first phase of the digital transformation was successfully implemented earlier this year allowing more businesses to voluntarily e-file their profits tax returns.This article discusses the motivations behind the HKIRD’s e-filing project,the implementation process as well as its implications for Hong Kong SAR,China.Digital transformation is an inevitable development in the society and commerce.To keep pace with the global trend of digital transformation,the public sectors in various jurisdictions have been digitalising financial and tax reporting over the past decades to harness IT to improve delivery of public services to customers and enhance the standard of information collection and administration.