28 March 2022 BEPS 2.0 - Impact on Hong Kong Businesses
In July 2021, over 130 jurisdictions of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS), including Hong Kong, jointly issued the “Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of Economy” to fundamentally reform international tax rules. The Statement, which was updated in October 2021, summarised the key components of Pillar One and Pillar Two under BEPS 2.0. Just before the end of 2021, the OECD released the long-awaited Model Rules for Pillar Two, which are meant to assist in the implementation of a global minimum tax of 15% for large multinational enterprises from 2023.
At the 2022/23 Hong Kong Budget Speech on 23 February 2022, the Financial Secretary mentioned that the Government plans to start the legislative process in the second half of 2022, and will also consider introducing a domestic minimum top-up tax with regard to affected MNEs starting from 2024/25.
In this webinar, our speakers, Gwenda Ho and Sophia Chan, Tax Partners of PwC Hong Kong, will discuss the objectives of the two pillars of BEPS 2.0 with a focus on Pillar Two, including an overview of the complex Model Rules, the potential impact on Hong Kong businesses with case studies and possible next steps.