Hong Kong tackles base erosion and profit shifting

What is the purpose of the BEPS bill?

To counter exploitation of gaps and mismatches in international tax rules by multinational enterprises

To drive out the use of some countries as tax havens

To prevent profit shifting

To ensure all companies, no matter their location, pay the right tax

Which of these is not part of the proposed bill?

Implement the recommendations on permanent establishment and intangibles

Introduce mandatory transfer pricing documentation requirements

Implement the five minimum standards set by the OECD

Codify transfer pricing principles

What might the arm's length principle be?

Countries within the OECD must not price the same products too differently

Companies must keep one another at arm's length

Companies must allow their tax department proper independence

The amount charged by one party to another for a product must be the same as if the parties did not know one another

Which of these things is not subject to the transfer pricing tax under the bill in relation to personal tax?

Salary tax

Property tax

Inheritance tax

Profit tax

What is an associated person?

A third party

Where one person participates in the control of another person

Anyone you do business with

Where one person participates in the control, management or capital of the other person

What will the country-by-country reporting contain?

Financial and tax information pertaining to the global allocation of income and taxes and their value chain

Details of the entire value chain of the company, including its subsidiaries

Tax information pertaining to the global allocation of income and taxes

Details of tax information for every country in which the multinational enterprise operates

Who is required to file CbCR?

Companies whose annual consolidated group revenue exceeds HK$6.8bn

Every company claiming residence in Hong Kong with operations outside Hong Kong

Companies who have part of their value chain in a different country

Every multinational enterprise in Hong Kong

What might those working in intellectual property need to do?

Conduct a review of the residence of the entirety of their IP value chain

Ensure that the location of the IP ownership matches the location of the majority of its use

Conduct CbCR

Make sure the location of the IP ownership is in line with the economic substance of the majority of its enhancement, maintenance, protection and exploitation

Why might companies want to review their operational structure?

To ensure that transfer pricing models and policies are in line with the operational structure

To ensure that they are compliant with BEPS

Because BEPS is likely to mean that more companies pay more tax and they will need to ensure that this is possible

Because BEPS and CbCR will take up a vast amount of internal time and effort and companies will need to plan for this

When do the rules take effect?

Immediately

1 April 2018 though early-adopt has been allowed

1 April 2020

1 April 2018

Hong Kong tackles base erosion and profit shifting

What is the purpose of the BEPS bill?

Which of these is not part of the proposed bill?

What might the arm's length principle be?

Which of these things is not subject to the transfer pricing tax under the bill in relation to personal tax?

What is an associated person?

What will the country-by-country reporting contain?

Who is required to file CbCR?

What might those working in intellectual property need to do?

Why might companies want to review their operational structure?

When do the rules take effect?

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Hong Kong tackles base erosion and profit shifting

What is the purpose of the BEPS bill?

Which of these is not part of the proposed bill?

What might the arm's length principle be?

Which of these things is not subject to the transfer pricing tax under the bill in relation to personal tax?

What is an associated person?

What will the country-by-country reporting contain?

Who is required to file CbCR?

What might those working in intellectual property need to do?

Why might companies want to review their operational structure?

When do the rules take effect?

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

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Our sites

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Using this site

Contact us

Planned system updates