Hong Kong’s Financial Secretary on 22 February 2017 delivered the budget speech to the Legislative Council. In his budget speech, the Secretary mentioned the government’s plan for implementing a statutory transfer pricing regime in Hong Kong.
The Hong Kong government conducted a public consultation exercise in late 2016 concerning the BEPS initiatives and for the adoption of a formal transfer pricing regime in Hong Kong with mandatory documentation requirements—including country-by-country reports for larger multinational groups. The Financial Secretary clarified Hong Kong’s position with regard to the package of measures put forward by the Organisation for Economic Cooperation and Development (OECD) to address base erosion and profit shifting (BEPS), and noted that Hong Kong has joined the OECD’s inclusive framework for implementing the BEPS package and is expanding its network of comprehensive avoidance of double taxation agreements.
