On 18 December 2019, Inland Revenue Department announced an extension to the due date for local filing of some country-by-country tax reports.

The local filing requirement applies to a relevant accounting period beginning on or after 1 January 2018.  Generally, a local filing entity, or its service provider, must file a CbC return electronically via a designated platform (i.e. the CbC Reporting Portal) within 12 months after the end of the accounting period (“filing deadline”) under section 58B(3) of the IRO.  Hence for most local filing entities, the relevant accounting period for which the first CbC return has to be filed (“first relevant accounting period”) will end on or after 31 December 2018, and the filing deadline will fall on or after 31 December 2019.

The Department recognizes that the discussion of some bilateral arrangements for exchange of CbC reports between Hong Kong and other jurisdictions is still underway and such arrangements, if concluded, may relieve the local filing entity from its filing obligation. Under these circumstances, for the first relevant accounting period ended between 31 December 2018 and 31 March 2019, the Department would accept the local filing entity or its service provider as having complied with the filing deadline under section 58B(3), provided that the CbC return is received via the CbC Reporting Portal on or before 31 March 2020.

The extension only applies to local filing entities with the first relevant accounting period ended between 31 December 2018 and 31 March 2019.  In respect of ultimate parent entities, surrogate parent entities, or local filing entities with the first relevant accounting period ended after 31 March 2019, the filing deadline should be duly observed.