Notification of obligation under country-by-country reporting (cbc reporting)
Section 58H of the Inland Revenue Ordinance provides for a Hong Kong entity, which is a member of a reportable group, to make notification of obligations to the Inland Revenue Department in respect of the cbc reporting. [read]
The texts of S58H is as follows:-
Notice by Hong Kong entities
(1) Subject to subsection (3), each Hong Kong entity of a reportable group must file a written notice with the Commissioner, informing the Commissioner of the following in respect of period P—
(a) the name, address and business registration number of each of the group's Hong Kong entities, identifying among them (as applicable)—
(i) the HK ultimate parent entity;
(ii) the surrogate parent entity that is resident for tax purposes in Hong Kong; or
(iii) a Hong Kong entity (not falling within subparagraph (i) or (ii)) that is to file a country-by-country return in accordance with section 58F;
(b) if the group's ultimate parent entity is resident for tax purposes in a jurisdiction other than Hong Kong—
(i) the jurisdiction of tax residence of the ultimate parent entity (jurisdiction U );
(ii) the name, address and business registration number (or equivalent particulars) of the ultimate parent entity;
(iii) whether, in relation to the group, a condition precedent for Hong Kong to require a Hong Kong entity of the group that is not the ultimate parent entity to file a country-by-country report is met within the meaning of section 58I(1); and
(iv) whether the ultimate parent entity has notified the tax authority of jurisdiction U in accordance with the laws or regulations of jurisdiction U that it is the ultimate parent entity (if the laws or regulations of jurisdiction U require the notification);
(c) if the SPE-filing-elsewhere exception is to apply within the meaning of section 58I(2)(a)—
(i) the jurisdiction of tax residence of the surrogate parent entity (jurisdiction S );
(ii) the name, address and business registration number (or equivalent particulars) of the surrogate parent entity; and
(iii) whether the surrogate parent entity has notified the tax authority of jurisdiction S in accordance with the laws or regulations of jurisdiction S that it is the surrogate parent entity (if the laws or regulations of jurisdiction S require the notification); and(d)any other information relevant for determining a Hong Kong entity's obligation to file a country-by-country return under this Division.
(2) The notice required by subsection (1) must be filed within 3 months after the end of period P (notification deadline ).
(3) A Hong Kong entity of a reportable group is not required to comply with subsection (1) if—
(a) it is none of the following—
(i) the HK ultimate parent entity of the group;
(ii) the group's surrogate parent entity resident for tax purposes in Hong Kong;
(iii) a Hong Kong entity of the group (not falling within subparagraph (i) or (ii)) that is to file a country-by-country return in accordance with section 58F in respect of period P; and
(b) by the notification deadline, another Hong Kong entity of the group (notifying entity ) has filed a notice in accordance with subsection (1) which—
(i) identifies the notifying entity as an entity referred to in paragraph (a)(i), (ii) or (iii);
(ii) states that, in relation to the group, no condition precedent for Hong Kong to require a Hong Kong entity of the group that is not the ultimate parent entity to file a country-by-country report is met within the meaning of section 58I(1); or
(iii) states that the SPE-filing-elsewhere exception is to apply within the meaning of section 58I(2)(a).
