Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023

Hong Kong, China

Recent developments relating to MAP in Hong Kong, China prior to 15 August 2023

Developments relating to MAP in the tax treaty network

• Entry into force of the tax treaty with Mauritius on 23 June 2023.

Other developments relating to MAP

• MAP guidance and MAP profile updated in 2023.

Latest Action 14 Peer Review report

18 October 2021 - https://doi.org/10.1787/a8bc6871-en

Tax treaty network of Hong Kong, China

• 44 treaties, applicable to 44 jurisdictions (covering all treaties signed, although not necessarily in force).

• status of MLI: in force.

Table 1. State of play of Hong Kong, China's tax treaty network

Treaties in line with the Action 14 Minimum Standard following MLI impact	Treaties where actions are ongoing to make them in line with the Action 14 Minimum Standard	Following impact/actions, remaining treaties that are not in line with Action 14 Minimum Standard
44	0	0

Source: OECD

Hong Kong, China's MAP programme

Organisation of competent authority function

• 35 professional officers of Tax Treaty Section:

  • Headed by two chief assessors

  • 33 professional officers working on MAP cases along with other treaty-related tasks

    • 12 professional officers working on APA and MAP cases involving transfer pricing and 21 professional officers working on other types of MAP cases.

• contact persons for MAP requests:

  • The Hong Kong Competent Authority

  • Tax Treaty Section Inland Revenue Department

  • GPO Box 10851, Hong Kong [Attn: Chief Assessor (Tax Treaty)]

  • Tel: [phone] Email: [e-mail].

Figure 1. Competent Authority Organisational Structure

Source: OECD

Table 2. Guidance on the MAP process

MAP guidance	Guidance on mutual agreement procedure, January 2023	https://www.ird.gov.hk/eng/pdf/2019/map_guidance.pdf (Section “Stage One” to be referred to for form and content of a MAP request, including information requirements)
	Web page	https://www.ird.gov.hk/eng/tax/dta_map.htm
MAP profile	9 January 2023	https://www.oecd.org/tax/dispute/hong-kong-dispute-resolution-profile.pdf

Overview of Hong Kong, China's MAP Statistics for 2022

Please refer to https://www.oecd.org/tax/dispute/map-statistics-hong-kong-china.pdf for details with respect to Hong Kong, China's MAP Statistics.

Figure 2. Cases closed in 2022

Source: OECD

Figure 3. Evolution of Hong Kong, China's MAP caseload (2016-22)

Source: OECD

Table 3. Overview of Hong Kong, China's MAP caseload for 2022

Inventory for year 2022	Opening Inventory 1/1/2022	Cases started	Cases Closed	End Inventory 31/12/2022
Attribution/allocation cases	6	7	2	11
Other cases	10	2	2	10
Total	16	9	4	21

Source: OECD

Table 4. Hong Kong, China's average time to resolve MAP cases in 2022

Cases resolved in year 2022	Pre-2016 cases		Post-2015 cases		All
	Number of cases	Average time	Number of cases	Average time	Number of cases	Average time
				Start to End
Attribution / Allocation cases	0	N/A	2	19.96	2	19.96
Other cases	0	N/A	2	8.98	2	8.98
All cases	0	N/A	4	14.47	4	14.47

Source: OECD