March 2018 - Hong Kong Issued Draft Legislation on Implementation of BEPS Action Plans
Further to its joining of the BEPS Inclusive Framework of the Organization for Economic Co-operation and Development (“OECD”) in June 2016, Hong Kong is obliged to introduce legislation to implement the various minimum standards under the OECD’s Base Erosion and Profit Shifting (“BEPS”) Action Plans1. On 29 December 2017, Inland Revenue (Amendment) (No.6) Bill 2017 (“Amendment Bill”) 2 was gazetted. The Amendment Bill covers (1) introduction of the statutory transfer pricing regime, (2) implementation of the various minimum standards under the OECD’s BEPS Action Plans and (3) revise the fees for applying for the advanced ruling.
The Amendment Bill is scheduled to be introduced to the Legislative Council for first reading on 10 January, 2018. With 162 pages, the Amendment Bill is extremely long, and it is expected to take a few months before it can be enacted. The analysis on the introduction of statutory transfer pricing regime has been published in our February Hong Kong Tax Newsletter.
This tax commentary would cover the amendments relating to the BEPS Action Plans.