Hong Kong will join the Organisation for Economic Co-operation & Development as an Associate in the inclusive framework for implementation of the package of measures against base erosion and profit shifting (BEPS).
Secretary for Financial Services & the Treasury Prof KC Chan made the announcement today, saying the Government accepted the organisation's invitation to join under the name of "Hong Kong, China".
Prof Chan noted that as an Associate, Hong Kong will become a member of the BEPS Project and work on an equal footing with the organisation, the Group of Twenty, as well as other countries and jurisdictions to implement the BEPS Package and to develop standards.
"Noting that the timing of implementation may vary to reflect the level of development of countries and jurisdictions, Hong Kong's commitment to implement the BEPS package is subject to timely passage of the necessary legislative amendments. In coming up with the timelines for implementation, we will take into account factors such as the characteristics of the domestic tax regime, the envisaged magnitude of legislative changes involved and the practical need to prioritise amongst the BEPS measures," he said.
The Government is conducting analysis on the BEPS Package, with a view to mapping out work priorities. It will consult the industry on the strategy for implementing the proposals at an appropriate juncture and prepare for taking forward the necessary legislative amendments.
Last November the G20 endorsed a package of measures proposed by the organisation to tackle BEPS, which covers 15 areas and seeks to ensure that multinational corporations pay a fair share of taxes in respect of their profits, and to plug the loophole of "double non-taxation" among jurisdictions.
