Comprehensive BEPS consultation
Published: 01 November 2016
The Hong Kong Government launched last week a consultation document to gauge public views on the implementation of measures to counter base erosion and profit shifting (BEPS) by enterprises (Implementation of measures to counter BEPS) . The FTSB emphasised Hong Kong’s support for international efforts to promote tax transparency and combat tax evasion and stated that, in formulating a BEPS implementation strategy, the Government will ensure Hong Kong’s tax system meets international standards without compromising its simple and low tax regime. Priority is given to putting in place the legislative framework for transfer pricing rules which cover the OECD's latest guidance, spontaneous exchange of information on tax rulings, the country-by-country reporting requirement, a cross-border dispute resolution mechanism and the multilateral instrument for tax treaty change. Legislative amendments are to be proposed at the Legislative Council in mid-2017. The consultation will run until 31 December 2016. For further information, please contact Paul Hale or Enrique Clemente in London or Kher Sheng Lee in APAC.