Hong Kong: Formal transfer pricing regime | KPMG | GLOBAL
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Hong Kong: Consultation on formal transfer pricing regime

Hong Kong: Formal transfer pricing regime

The Hong Kong government has launched a public consultation to gauge views on the implementation of the OECD’s anti-base erosion and profit shifting (BEPS) initiatives. Among the proposal is a measure for the adoption of a formal transfer pricing regime in Hong Kong, with mandatory documentation requirements.


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Other than limited exemptions for smaller taxpayers, Hong Kong taxpayers with related-party transactions would be required to formalize and document their transfer pricing arrangements with related parties. Along with additional compliance and reporting obligations, there would be penalties for non-compliance. 


Read an October 2016 report prepared by the KPMG member firm in Hong Kong: Consultation paper on BEPS launched in Hong Kong

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