香港税务条例释义及执行指引第46号(香港转让定价指引)

Ourwebsite:’sinterpretationandpracticesinrelationtothelawasitstoodatthedateofpublication.TaxpayersareremindedthattheirrightofobjectionagainsttheassessmentandtheirrightofappealtotheCommissioner,theBoardofReviewortheCourtarenotaffectedbytheapplicationofthesenotes.LAUMAKYee-ming,AliceCommissionerofInlandRevenueDecember2009DEPARTMENTALINTERPRETATIONANDPRACTICENOTESNo.46CONTENTSParagraphIntroductionDefiningtheissue1AssociatedenterprisesAssociatedenterprisesarticle9Participationinmanagement,controlorcapital13EliminationofdoubletaxationDoubletaxationandappropriateadjustment15StatutoryprovisionsandcaselawsProvisionsandcaselawsrelevanttotransferpricing17PermanentestablishmentsAttributionrulesandprofitsofapermanentestablishment29Arm’slengthprincipleThearm’slengthprinciple36Applyingthearm’slengthprinciple39Functionalanalysis40Comparabilityanalysis43DeterminingcomparabilityFactorsidentifiedbyOECD48Characteristicsofpropertyorservices49Functions,assetsandrisks50Contractualterms53Economicandmarketingcircumstances54Businessstrategies55Globalpricelists61Establishingthereliabilityofthedata63iiTransferpricingmethodologiesThemethodologies66SourceofprofitsTransferpricingandsourceofprofitsorincome71TaxschemesAbusivetaxschemes73Transferpricingschemes76DocumentationTransferpricingdocumentation85Intra-groupserviceServicearrangement90Deductionofexpenditurepaidforintra-groupservice95Amountofintra-groupservicecharge100Servicesprovidedbyapermanentestablishment106ConclusionOverallposition109Appendix:TransferpricingmethodologiesAComparableuncontrolledpricemethodBCostplusmethodCResalepricemethodDProfitsplitmethodETransactionalnetmarginmethodINTRODUCTIONDefiningtheissueTransferpricingisconcernedwithpriceschargedbetweenassociatedenterprisesforthetransferofgoods,servicesandintangibleproperty.ProvisionsrelevanttotransferpricingcanbefoundintheInlandRevenueOrdinance(theIRO)andthecomprehensivedoubletaxationagreements(theDTAs).ByordersmadebytheChiefExecutiveinCouncilundersection49oftheIRO,thearrangementsintheDTAswillhaveeffectinrelationtotaxundertheIROnotwithstandinganythinginanyenactment.2.ThisPracticeNotesetsouttheDepartment’sviewsandpracticesonthemethodologiesoftransferpricingandrelatedissues.DepartmentalInterpretationandPracticeNotesNo.45dealswithdoubletaxationreliefoftransferpricingadjustments.3.HongKonghassofarconcludedfiveDTAswithBelgium,Thailand,MainlandChina,LuxembourgandVietnam.Theyallhaveprovisionsmandatingtheadoptionofthearm’slengthprincipleforpricingtransactionsbetweenassociatedenterprises.ItisexpectedthatfutureDTAswillcontainsimilarprovisions.4.Thearm’slengthprincipleusesthetransactionsofindependententerprisesasabenchmarktodeterminehowprofitsandexpensesshouldbeallocatedforthetransactionsbetweenassociatedenterprises.Itcompareswhatanenterprisehastransactedwithitsassociatedenterprisewithwhatatrulyindependententerprisewouldhavedoneinthesameorsimilarcircumstances.5.Iftransferpricingdoesnotfollowthearm’slengthprinciple,thetaxliabilitiesofassociatedenterpriseswillbedistorted.ThebasicruleforDTApurposesisthatprofitstaxchargedorpayableshouldbeadjusted,wherenecessary,toreflectthepositionwhichwouldhaveexistedifthearm’slengthprinciplehadbeenappliedinsteadoftheactualpricetransactedbetweentheenterprises.26.Thearm’slengthprinciplewhichisendorsedbytheOrganisationforEconomicCo-operationandDevelopment(theOECD)isembodiedintheAssociatedEnterprisesArticleorArticle9oftheOECDModelTaxConventiononIncomeandonCapital(theOECDModel).TheDTAsoftheHongKongSARhaveadoptedthearticleandtheprovisionsforrewritingoftransactionstherein.7.UndertheBusinessProfitsArticleorArticle7oftheOECDModel,transferpricingprinciplesareequallyapplicabletotransactionsbetweendifferentpartsofanenterprise(e.g.betweenaheadofficeandpermanentestablishmentorbetweendifferentpermanentestablishmentsofthesameenterprise).8.Generally,theCommissionerwouldseektoapplytheprinciplesintheOECDTransferPricingGuidelinesforMultinationalEnterprisesandTaxAdministrations(theOECDTransferPricingGuidelines),exceptwheretheyareincompatiblewiththeexpressprovisionsoftheIRO.Transactionsactuallyundertakenbytheassociatedenterpriseswouldbeconsidered,exceptwheretheeconomicsubstancediffersfromitsformorthestructureisnotonethatcommerciallyrationalindependententerpriseswouldarrange.Theuseofranges,suchasaninter-quartilerange,wouldbeacceptedinthedeterminationofanarm’slengthprice.ASSOCIATEDENTERPRISESAssociatedenterprisesarticle9.Thegeneralapplicationofthearm’slengthprincipleisarticulatedintheAssociatedEnterprisesArticleorArticle9oftheOECDModel.Article9(1)statesthat:“Where(a)anenterpriseofaContractingStateparticipatesdirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseoftheotherContractingState,or3(b)thesamepersonsparticipatedirectlyorindirectlyinthemanagement,controlorcapitalofan