Hong Kong Launches CbC Reporting Portal
Hong Kong’s Inland Revenue Department on March 5 launched its new Country-by-Country Reporting Portal.
Groups can now register to file CbC reports for accounting periods beginning between January 1, 2016, and December 31, 2017, using the online portal.
The CbC report is one element of a new three-tiered standardized approach to transfer pricing documentation, as proposed in Action 13 of the OECD’s base erosion and profit shifting (BEPS) project.
CbC reporting requires multinational enterprises to provide aggregate information annually, in each jurisdiction where they do business, relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the MNE group. It also covers information about which entities do business in a particular jurisdiction and the business activities each entity engages in.
The requirement for filing a CbC report in Hong Kong applies to the parent entity of MNE groups whose annual consolidated group revenues exceeds HKD6.8bn (USD868.3m), and in exceptional circumstances surrogate entities of the group.
