On 29 July 2021, the Inland Revenue Department (IRD) of Hong Kong set up a webpage to provide general guidance on the IRD's approach in handling tax issues arising from the COVID-19 pandemic, including issues on the tax residence status of companies and individuals, permanent establishments, employment income of cross-border employees and transfer pricing. The IRD stresses that the treatment of each case will be determined based on its facts and circumstances.
It should also be noted that the IRD's approach in relation to these tax issues is generally in line with the OECD's Updated Guidance on Tax Treaties and the Impact of the COVID-19 Pandemic and Guidance on the Transfer Pricing Implications of the COVID-19 Pandemic of January 2021 and December 2020, respectively, to which further references may be made.