There are provided methods and apparatus for inter-layer residue prediction for scalable video. An apparatus is described for an encoder for encoding a block of a picture, or a decoder for decoding a block of a picture, by applying inverse tone mapping to an inter-layer residue prediction process for the block, wherein the inverse tone mapping is performed in the pixel domain. Methods for encoding or decoding a block of a picture are also described; and performed by applying inverse tone mapping to an inter-layer residue prediction process for the block, wherein the inverse tone mapping is performed in the pixel domain.