Hong Kong Consultation on Measures against BEPS
Tax Analysis:February 2017/China
The Financial Services and the Treasury Bureau of the Hong Kong SAR Government ("HKSAR") issued a Consultation Paper (the "Consultation Paper") on 26 October 2016 inviting public opinions on proposed measures to be taken by Hong Kong against Base Erosion and Profit Shifting (BEPS). This laid out the HKSAR's official roadmap to introduce the necessary implementation, after its signatory to the Organization for Economic Co-operation and Development ("OECD") BEPS Action Plan Project in June 2016 as an associate of the BEPS Action Plan Project. (Tax Analysis:February 2017/China)
The BEPS Action Plan Project was formalized on 5 October 2015, when the G20/OECD published 13 final reports and an explanatory statement detailing a 15-point complete and cohesive approach, providing governments with actions for closing the gaps in existing international rules that allow corporate profits to “disappear” or be “artificially shifted” to low/ nil tax environments, where little or no economic activity takes place.
In this Tax Analysis, we would discuss some of the prominent features proposed by the Consultation Paper: