Transfer pricing takes a step forward in Hong Kong with the launch of an APA program

Tax Controversy & Dispute Resolution ()

On 3 January 2012, during a seminar organised by the Hong Kong Inland Revenue Department (“IRD”), the Commissioner of Inland Revenue (“CIR”) announced that the IRD would launch an advance pricing arrangement (“APA”) program in April of this year.

Initial steps leading to the launch of the APA program would include the release of the draft Departmental Interpretation and Practice Notes (“DIPN”) on the APA program (expected to take place in mid- to late-January) for consultation.