The lengthy tax legislation that implements a transfer pricing regime and key actions arising from the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) project in Hong Kong was gazetted as Inland Revenue (Amendment) (No.6) Ordinance 2018 on July 13, 2018. Although the new tax legislation mostly covers the issues on BEPS, it also introduces various changes to salaries tax, in particular, the income exclusion claim under section 8(1A)(c) of the Inland Revenue Ordinance (IRO) as a means for double tax relief.
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