COVID-19 – CPA Information Centre

Member services

The Hong Kong Institute of Certified Public Accountants announced resumption of the normal service hours of counter on the 27th floor with effect from 21 Apil 2022. We are also pleased to re-open our library facilities with effect from 21 April 2022. The library opening hours are 9:00 a.m. to 7:00 p.m. Monday to Friday, and 9:00 a.m. to 12:00 noon on Saturday.

Free e-Learning CPD courses

There are a selection of free e-learning CPD courses available for members and QP students. There are both verifiable and non-verifiable CPD programmes. The verifiable CPD course is: 

• e-Finance course Statement of cash flows and Corporate finance – Capital structure and liquidity 

Non-verifiable CPD courses:

• Archived webinar valuing financial instruments offered by iiBV
• Key recommendations in the HKICPA report on improving corporate governance in Hong Kong (2017)

Practice review
Reviews are still being undertaken at the Institute’s office. Tentative plans to undertake on site practice review visits are being made and notifications will be sent to the relevant practice units once the schedule is finalized.

Complaint handling
We take great pride in the efficiency and fairness of our complaint handling process and discharge our duty to protect the public interest while respecting the interests of our members. To allow members involved in complaints to properly deal with enquiries and other related matters, our compliance team will consider requests for extension of deadlines on a case-by-case basis.

Institute’s messages

The Institute has sent members messages on the COVID-19 epidemic and the impact on its activities. The latest of which is below.

New webpage on government relief measures 

The government has announced over 70 measures to support Hong Kong through the COVID-19 pandemic. To help members, the Institute has created a webpage containing important information about schemes most relevant to the community.

Free access to International Standards

Members can access ICAEW’s International Standards for free. Containing world-class technical resources, practical guidance, and live and recorded webinars, International Standards offers relevant and detailed information on accounting, auditing and ethics standards. For access, members need to complete a short registration process.

Support Programme for attending CPD

The Institute’s Support Programme has long been offering 5% of the seats at face-to-face CPD events free of charge to members who are unemployed or who are not working and planning to rejoin the workforce.

In light of the continuing restrictions and the replacement of face-to-face events with webinars, the Support Programme has been extended to include webinars. Eligible events are indicated in the event list.

Combatting Fraud

A new simple guide from the Institute to help avoid fraud and deception during a pandemic.

HKICPA Trust Fund

The HKICPA Trust Fund, provides assistance to members and their families experiencing financial hardship. Details can be found here.

We recognize the need for flexibility in the current situation and so have lifted the requirement to complete a full application form. Applications can be sent to the Secretary (hkicpa_trust@hkicpa.org.hk) with a brief outline of the circumstances. Applications will be considered on a case-by-case basis by the fund’s trustees, who may seek further information or a full application.

Advice for auditors

• Auditing and COVID-19, A quick guide (from the Institute)
• Circular on Reporting under the Catering Business (Social Distancing) Subsidy Scheme (from the Institute)
• Financial Reporting, Auditing and Ethics Alert: Impact of Coronavirus Outbreak on Audits and Auditors (from the Institute)
• Alert – Staff Audit Practice Alert (March 2020) “Highlighting Areas of Focus in an Evolving Audit  Environment Due to the Impact of COVID-19” (from the International Auditing and Assurance Standards Board)
• Webinar Series: Practical Audit Quality Considerations (from the International Auditing and Assurance Standards Board)
  Webinar 1 - Planning the Audit in the Pandemic Environment: Recording & Summary of Key Takeaways
  Webinar 2 – Performing the Audit in the Pandemic Environment: Recording & Summary of Key Takeaways
  Webinar 3 – Auditor Reporting in the Pandemic Environment and Looking Ahead: Recording & Summary of Key Takeaways

Financial reporting

• COVID-19-related financial reporting issues for SME-FRF & SME-FRS financial statements (from the Institute)
• Educational guidance on COVID-19 related financial reporting issues (from the Institute)
• Financial Reporting, Auditing and Ethics Alert: Financial Reporting Implications of Coronavirus (from the Institute)
• Financial Reporting, Auditing and Ethics Alert: Financial Reporting Considerations to Close Out 2020 (from the Institute)
• Guidance – IFRS 9 and COVID-19 (from the International Accounting Standards Board)

Listed companies reporting 

• The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (HKEX) released a joint statement on 4 February 2020 in relation to the reporting requirements for results under the listing rules for listed companies on 16 March 2020. 
• The HKEX published a Listed Issuer Regulation Newsletter on 24 April 2020 which contains observations based on issuers’ recent announcements of business updates, and guidance on best practices in making disclosures in the current environment under COVID-19.
• The Institute published a report "COVID-19 disclosures by listed companies: A research study" that reviews how Hong Kong listed companies have been communicating the impact of COVID-19, focusing on listed companies with a financial year that ended 31 March 2020.

Professional accountants in business

• The COVID-19 Impact: The survey of PAIBs (from the Institute)

Small and medium sized entities

• Small Business Continuity Checklist – How to Survive and Thrive Post Covid-19 (from the International Federation of Accountants)
• COVID-19 and going concern – Guidance for directors of SME businesses (from the Institute of Chartered Accountants in England and Wales)

Restructuring and insolvency

• Letter from the Official Receiver’s Office regarding impact of COVID-19
• Restructuring and Insolvency Faculty Executive Committee:  How to Manage Financial Distress – Advice for Business and Individuals (also available in Chinese) (from the Institute)

Taxation

• Analysis of Tax Treaties and the Impact of the COVID-19 Crisis (from the Organization for Economic Co-operation and Development Secretariat) (related Chinese article by the Institute published in Oriental Daily)

Exemption from compulsory quarantine arrangement

Practising members required to travel to the Mainland

The government announced on 18 May 2020 that certified public accountants (practising), partners, directors or employees of registered practice units who are required to travel to the Mainland to conduct audit work for companies listed in Hong Kong with Mainland operations may apply for exemption from the compulsory quarantine arrangement. The Institute is providing administrative support for the scheme, and has sent public interest entity auditors an email, information paper and forms (1, 2) for their completion. 

Latest update

On 1 November 2021, the Government announced the cancellation of the majority of the exemption categories under Cap. 599C, including the category for PIE auditors, with effect from 12 November 2021. All authorisation letters previously issued will be revoked and the exemption status will be removed by the time of the cancellation of the exemption category. The persons concerned may return to Hong Kong either by the Return2HK / Come2HK Scheme or subject to the prevailing quarantine arrangements in accordance with their respective travel history. Please click here for further details regarding the cancellation.  

For any enquiry in relation to the Return2HK / Come2HK Scheme and the relevant quarantine mechanism, please contact the designated helpdesk at 3142 2330 or refer to the website at <www.coronavirus.gov.hk/eng/return2hk-scheme.html> for details. 

For the previous announcements, please click here for details.

Return2hk quarantine exemptions

On 7 September 2021, the government announced to resume qarantine exemption for persons returning from both Mainland areas other than Guangdong Province and Macao under the Return2hk Scheme. Visit the scheme’s webpage for more information. 

In the government’s original announcement of the scheme on 11 November 2020, additional condition were introduced to the exempted persons, both approved or will be approved, under Cap. 599C "Compulsory Quarantine of Certain Persons Arriving at Hong Kong Regulation" arriving Hong Kong via land boundary control points. The additional conditions, with effect from 23 November 2020, are also applicable to authorizations issued previously by Financial Services and the Treasury Bureau to exempted persons, whether or not they have or are yet to travel to the Mainland. Please click here for details

Guidelines for vehicles providing point-to-point transportation to Cap 599C exempted persons

The Food and Health Bureau issued guidelines for exempted persons and the practice units’ reference of the best practices when arranging point-to-point transportation in March 2021. In the case where the exempted persons arrange the point-to-point transportation by themselves (e.g. pick-up by family or friends), they are also encouraged to follow the guidelines as far as applicable. Click here for details.

Two tutorial videos on the disinfection procedure for vehicles providing point-to-point transportation and preparation of portable 1:49 bleach wipes gear for vehicles are provided by the Bureau for exempted persons' reference and implementation as far as practicable.  

Other professions that can apply for exemption

• Arbitrators, mediators and qualified legal practitioners
• Medical personnel
• People engaged in technological research and development co-operation-related activities in the Mainland
• Enterprises with manufacturing operations in the Mainland
• Enterprises with provision of construction-related professional services in the Mainland
• Enterprises with an operating base relating to logistics, port or shipping business in the Mainland
• Directors of listed companies or listing applicants
• Directors and executives of specified listed companies that are included in the Hang Seng Index, Hang Seng China Enterprises Index or Hang Seng Composite LargeCap, MidCap or SmallCap Index, representing around 95 per cent of the total market capitalization in Hong Kong

For all exemptions, click here.

Quarantine measures for inbound travellers

On 27 March 2022, the government announced adjustments to boarding, quarantine and testing arrangements for inbound travellers under the risk-based principle. Visit the dedicated webpage for details.

Financial Industry Recruitment Scheme for Tomorrow (FIRST)

On 25 September 2020, the Financial Services and the Treasury Bureau announced that the Financial Industry Recruitment Scheme for Tomorrow (FIRST) under the second round of the Anti-epidemic Fund will be launched and open for application on 30 September 2020. FIRST is a cross-sectoral job creation scheme dedicated to the financial services industry to help create 1,500 new jobs in the financial services industry. Refer to the dedicated webpage for details.

The Financial Industry Recruitment Scheme for young graduates (YOUTH), as an extension of FIRST is open for applications starting from 28 July 2021. YOUTH allows eligible employers to apply for a subsidy to employ up to two university graduates of 2019 to 2021. CPA firms and corporate practices registered with the Institute are eligible to apply for a HK$10,000 salary subsidy per month for 12 months for each eligible new hire. Visit the scheme's webpage for details.

Latest social distancing measures 
On 20 September, the government announced to maintain existing social distancing measures.

Advice on general meetings

For companies with annual general meetings, there are specific exemptions to the regulations to allow them to hold their AGMs, subject to no food or drink being served, the number of persons allowed in a room or partitioned area is 20. More details can be found in the press release from the government. Other bodies have also released guidance:

• The SFC and the HKEX released a joint statement on 1 April 2020.
• The Companies Registry has a webpage containing answers to questions about holding a general meeting.
• The Hong Kong Institute of Chartered Secretaries has also published guidance and messages on the topic on 31 March 2020 , 9 April 2020, and 21 April 2020. 
  

Government services

• Companies Registry – Normal opening hours of counter services have resumed (i.e. 8:45 a.m. to 5:30 p.m. from Monday to Friday) starting from 19 April 2022. Refer to the announcement for detailed arrangements and the annex for details of normal service hours. 
• Inland Revenue Department – Normal public services have largely resumed from 21 April 2022 onwards, save for the public search counter services of the Business Registration Office (BRO). Refer to the department’s website for detailed arrangements and details of the opening hours of its various offices.
• The Judiciary – Operating hours of the registries and accounts offices have returned to normal from 20 April 2022 onwards, i.e. from 8.45 a.m. to 1:00 p.m. and from 2:00 p.m. to 5.30 p.m. (Monday to Friday, except public holidays) and the special ticketing arrangements at the High Court Registry has also been ceased. Ticketing arrangements for a few remaining courts are also be ceased as soon as practicable. Refer to the announcement for detailed arrangements.
• Official Receiver's Office – All offices have resumed normal services between 8:30 a.m. to 12:30 p.m. and 2:00 p.m. to 5:45 p.m. from Monday to Friday, starting from 21 April 2022. Refer to the announcement for detailed arrangements.
  
  

Inland Revenue Department announcements

Filing deadlines for 2021/22

The IRD has announced arrangements for certain longer extended tax due dates, in particular, under the Block Extension Scheme for taxpayers who are represented. Below is a quick summary of the extension arrangements.

• 2021/22 profits tax returns:
  According to the circular letter issued to tax representatives, the following are the extended due dates for lodging profits tax returns for the year of assessment 2021/22:
  
  

  Accounting date code	Extended due date	Further extended due date if opting for e-filing
  "N" code	30 June 2022	14 July 2022
  "D" code	31 August 2022	14 September 2022
  "M" code	15 November 2022	29 November 2022
  "M" code  - currently year loss cases	31 January 2023	No further extension

   

• 2021/22 salaries tax returns:
  This year, the bulk issue of 2021/22 salaries tax returns will take place on 1 June. For represented cases not involving sole proprietorship business accounts, a block extension for submission of tax returns will be granted to 2 August. For those involving sole proprietorship business accounts (irrespective of accounting date), an extension will be granted to 1 November.
  
  The due date for unrepresented cases not involving sole-proprietorship business will be 2 July, while, for those involving sole-proprietorship business, it will be 1 September. An automatic extension of 1 month will be granted to unrepresented taxpayers who file their tax returns through the Internet.
  
  
• Employer's returns:
  
  Although the Block Extension Scheme does not apply to employer’s returns, taking into account that the bulk issue of 2021/22 Tax Return - Individuals will take place on 1 June, the IRD announced that the deadline for filing of employer's returns is extended to 1 June.

• Country-by-country reporting notification deadline
  The IRD will allow Hong Kong entities and their service providers to file country-by-county (CbCR) notifications, via the CbCR portal, on or before 1 June for the relevant accounting periods ending between 31 December 2021 and 28 February 2022. More information on country-by-country reporting can be found on the IRD website.
  
  

Tax Exemptions in respect of Relief Measures under the Anti-epidemic Fund

The Exemption from Salaries Tax and Profits Tax (Anti-epidemic Fund) Order ("the Exemption Order") came into operation on 29 May 2020. The order implements tax exemptions from the year of assessment commencing on 1 April 2019 and for all subsequent years of assessment to most of the financial assistance or relief under the Anti-epidemic Fund provided to businesses or individuals. Read the press release and annex for more about the order, and refer to the announcement for detailed arrangements.

The HKSAR government

• The HKSAR government’s COVID-19 Thematic Website, a one-stop platform for the local situation of the COVID-19 epidemic, including figures and dashboards relating to the epidemic, infection situation updates, government’s measures, health advice and guidance, as well as public services special arrangement updates.
• Information Services Department, latest news on the COVID-19 from news.gov.hk.

International bodies

• The International Federation of Accountants' COVID-19 Resources from IFAC's Network.
• The International Auditing and Assurance Standards Board's COVID-19 webpage.
• Article - Maintaining Trust & Confidence During a Crisis: New Point-of-View (from The International Federation of Accountants)
• Article - From essential to indispensable: Five steps to navigating the COVID-19 storm (from The International Federation of Accountants) 
• Report - Building a Better Future – The Role of the Accounting Profession (from the A4S's Accounting Bodies Network)

Global Accounting Alliance members

• American Institute of Certified Public Accountants
• Chartered Accountants Australia and New Zealand
• Chartered Accountants Ireland
• Chartered Professional Accountants of Canada
• Institute of Chartered Accountants in England and Wales
• Institut der Wirtschaftsprüfer
• Institute of Chartered Accountants of Scotland
• Japanese Institute of Certified Public Accountants
• South African Institute of Chartered Accountants

Accounting firms

• Article – Coronavirus Impact And Risk Response Guide (from BDO)
• Article – 10 Key Actions For Enterprises In An Epidemic (from Deloitte)
• Analysis – Turning Crisis Into Opportunity: Analysis On The Chinese Economy And Suggestion For Companies Amid The Coronavirus (from EY)
• Article – How The Coronavirus Outbreak Might Affect Your Business Contracts (from KPMG)
• Article – COVID-19: Four Essential Crisis Management Lessons (from PwC)

Law firms

• Article – Coronavirus Crisis Management Through Force Majeure – A Hong Kong Law Perspective (from Baker & McKenzie)
• Article – Novel Coronavirus: How The Government’s Latest Quarantine Arrangements Affect The Workplace, And How Employers Should Be Managing This Difficult Situation (from Deacons)
• Resource hub - Legal issues relating to COVID-19 (from Gall)

Others

• The Hong Kong General Chamber of Commerce’s Coronavirus Business Help Corner
• The Hong Kong Institute of Chartered Secretaries' COVID-19 – Annual General Meetings (AGMs) pandemic concerns
• Article - Coronavirus: Introducing reverse stress testing (from ICAEW)
• Article - How to shape your corporate social responsibility around COVID-19 (from Entrepreneur)
• Article - Pandemic performance strategies for finance leaders (from Financial Management)
• Guidance notes - Protecting Personal Data under Work-from-home Arrangements: Guidance for Organisations (from Office of the Privacy Commissioner for Personal Data, Hong Kong)
• Guidance notes - Protecting Personal Data under Work-from-home Arrangements: Guidance for Employees (from Office of the Privacy Commissioner for Personal Data, Hong Kong)
• Guidance notes - Protecting Personal Data under Work-from-home Arrangements: Guidance on the Use of Video Conferencing Software (from Office of the Privacy Commissioner for Personal Data, Hong Kong)
• Podcast - Pandemic-related legal risks that you can’t afford to ignore (from Journal of Accountancy)
• Report - Meaningful work for the digital professional: roadmap beyond the pandemic (from the Association of Chartered Certified Accountants & EY)