Tax Profressional usually responds in minutes

Our tax advisers are all verified

Unlimited follow-up questions

  • Sign in
  • ARTICLE - Hong Kong

    Hong Kong & The Multilateral Convention

    12 Dec

    The Multilateral Convention

    The Hong Kong SAR government is acting to implement the Multilateral Convention on Implementing Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting.

    The OECD developed the convention to ensure swift, coordinated and consistent implementation of its tax treaty-related base erosion and profit-shifting measures in a multilateral context.

    The Multilateral Convention is one of the 15 recommended actions from the Organization for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project.

    It enables fast and steady implementation of the tax treaty-related recommendations under BEPS – hybrid mismatches (Action 2), tax treaty abuse (Action 6), permanent establishments (Action 7) and dispute resolution (Action 14).

    The Inland Revenue (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting) Order was tabled at the Legislative Council on 19 October for negative vetting.

    The Government of the People's Republic of China's Role

    In May 2022, China started with its approval with the OECD.

    The Chinese government extended the application of the MLI to Hong Kong and its provisions will take effect here after the completion of domestic legislative procedures.

    Hong Kong has listed 39 countries it has signed DTAs with as countries intended to be covered by the MLI.

    The remaining six DTAs have already included BEPS-compliant provisions.

    The MLI will take effect in Hong Kong concerning covered DTA's at the beginning of April 2023 for taxes withheld at source or 1 April 2024 for other taxes.

    Next steps

    If you have any general queries about this article on the MLI or Hong Kong tax matters, please do not hesitate to get in touch.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus ut semper risus. Fusce ac pharetra sem. Praesent vitae eros a quam fermentum dignissim.

    MR BLAKEFIELD. REGAL CAPITAL. FLORIDA.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus ut semper risus. Fusce ac pharetra sem. Praesent vitae eros a quam fermentum dignissim.

    MR BLAKEFIELD. REGAL CAPITAL. FLORIDA.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus ut semper risus. Fusce ac pharetra sem. Praesent vitae eros a quam fermentum dignissim.

    MR BLAKEFIELD. REGAL CAPITAL. FLORIDA.

    1/3

    Contact us

    If you’re having any problems with your membership, account, or just generally loving Tax Natives. Drop us a line here and we’ll get back to you.

    Contact

    We collect personal information when you enquire about our services. We will use this information to provide the services requested, maintain records and, if you agree below, to send you marketing information. We will not share your infromation for marketing purposes with any other companies. For more information explaining how we use your information please see our Privacy Policy(Required)
    This field is for validation purposes and should be left unchanged.