Hong Kong, China Now Sharing CbC Reports
Mary Swire, Tax-News.com, Hong Kong
17 March, 2020
On March 4, 2020, the Hong Kong Government said that an arrangement with China on the automatic exchange of country-by-country reports is in effect.
The exchange arrangement applies to accounting periods beginning on or after January 1, 2018.
The Hong Kong Inland Revenue Department (IRD) said that some Hong Kong entities of reportable groups whose ultimate parent entities are resident for tax purposes in China have previously notified the IRD of their filing obligation under the Inland Revenue Ordinance, in respect of the same accounting periods, and have received notices requiring them to file CbC returns. The IRD said that where such entities are now relieved from their filing obligation because of the exchange arrangement, they should notify the IRD through the CbC Reporting Portal on or before March 31, 2020.
Hong Kong's CbC reporting obligations apply to those multinational groups headquartered in Hong Kong whose annual consolidated group revenue was over HKD6.8bn in the previous fiscal year.