The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email (editor@transferpricingnews.com) and by phone (+447808558597).
On December 29, 2017, Hong Kong gazetted the Inland Revenue (Amendment) (No. 6) Bill, 2017, which codifies transfer pricing principles into the Inland Revenue Ordinance (Cap. 112) and implements the OECD’s BEPS minimum standards.
The Bill provides for an implementation framework for country-by-country (CbC) reporting in Hong Kong. CbC reporting is part of a three-tiered approach to transfer pricing documentation (along with “master” and “local” files) developed under BEPS Action 13. The Bill also includes amendments to ensure that certain tax regimes are consistent with the latest requirements of the OECD and the European Union on fair taxation.
The Government said: “Implementing the BEPS package is crucial for Hong Kong to preserve our competitiveness and reputation as an international financial and business centre. We will ensure that the international tax standards are met whilst upholding our simple and low tax regime.”
“We will also seek to minimize the compliance burden on businesses, particularly small and medium enterprises, and implement the changes in a progressive manner. Our consultation exercise conducted in late 2016 revealed broad support for this implementation strategy.”
Hong Kong had indicated its commitment to implementing the BEPS package in June 2016.