Hong Kong (China)
A. Progress in the implementation of the minimum standard
Hong Kong (China) has 43 tax agreements in force as reported in its response to the Peer Review questionnaire. Five of those agreements comply with the minimum standard.
Hong Kong (China) joined the MLI in 2017 and China (People’s Republic of) deposited an instrument of approval that covered Hong Kong (China)’s agreements on 25 May 2022, listing its non-compliant agreements. The MLI entered into force on 1 September 2022.The agreements modified by the MLI come into compliance with the minimum standard once the provisions of the MLI take effect.
A reservation to delay the entry into effect of the provisions of the MLI until internal procedures are completed for this purpose with respect to each listed agreement was made under the MLI.1Notifications on the completion of internal procedures for the entry into effect of the MLI have not yet been made with respect to any agreement.
Hong Kong (China) is implementing the minimum standard through the inclusion of the preamble statement and the PPT.2
B. Conclusion
Acknowledging that the MLI only entered into force on 1 September 2022, no recommendation is made that steps be completed to have the MLI take effect with respect to Hong Kong (China)’s listed agreements. However, it is expected that the process to complete such steps will swiftly start, as the listed agreements will only be modified by the MLI (and come into compliance with the minimum standard) once the provisions of the MLI take effect.
Notes
← 1. The reservation was made under Article 35(7)(a) of the MLI.
← 2. For its agreements listed under the MLI, Hong Kong (China) is implementing the preamble statement (Article 6 of the MLI) and the PPT (Article 7 of the MLI). Hong Kong (China) has made a reservation pursuant to Article 6(4) of the MLI not to apply Article 6(1) of the MLI with respect to agreements that already contain the relevant preamble language (covering one agreement). Hong Kong (China) has also made a reservation pursuant to Article 7(15)(b) of the MLI not to apply Article 7(1) of the MLI with respect to agreements that already contain a PPT (covering two agreements).