The HKSAR Government exposes strategy for executing BEPS measures in its consultation paper

The HKSAR Government exposes strategy for executing BEPS measures in its consultation paper

November 1, 2016

On 26 October 2016, the HKSAR Government propelled a public consultation on executing measures to counter BEPS in Hong Kong. The BEPS consultation paper issued by the HKSAR Government demonstrates that it will concentrate on the four minimum guidelines for executing the BEPS package recognized by the OECD and measures that are of direct importance to their usage. The HKSAR Government has set out in the consultation paper recommendations associated to their application

The BEPS consultation propelled by the HKSAR Government implies the beginning of the possibly long and progressing venture for Hong Kong to execute the OECD’s BEPS package and adjust its tax system to the most recent international tax standards. Multinational enterprise groups should survey the potential effect of the recommendations in the BEPS consultation paper on their current holding structures and business operations and also their present prepared wider BEPS responses outside Hong Kong, and stay tuned of the forthcoming legislation in both TP and other non-TP regions.

1. Transfer Pricing (TP) regulatory regime

2. TP documentation and nation by-nation reporting

3. Anti-treaty misuse rules in CDTAs

4. Multilateral instrument

5. Other associated matters, specifically a statutory cross-border disagreement resolution system, unconstrained trade of data on tax decisions and enhancement to the tax system.

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