information

On November 28, 2023, the Hong Kong government published a press statement in which it informs and welcomes the passing of the Inland Revenue (Amendment) (Taxation on Foreign-sourced Disposal Gains) Bill 2023 by the Legislative Council. The Bill further refines the foreign-sourced income exemption (FSIE) regime for large Multi-National Entities (MNEs) that has been in place since January 1, 2023. The current regime requires MNEs to meet the „substance“ requirement – that is the requirement that the entity has a „substantial economic presence“ in Hong Kong – for passive foreign income on dividends, interest, equity disposal gains and intellectual property to be excluded from taxation in Hong Kong. This „substance“ requirement must now be met for ALL forms of capital gains for the exemption to apply.
According to the press statement, the final version includes various exemptions and provides double taxation relief on gains on such assets. It also provides for a „treatment of disposal loss as well as business facilitating measures to reduce compliance burden“. A list of exemptions and detailed descriptions of the upcoming changes may be found here.
To conclude, the government notes that it will soon inform the EU of the changes and request a removal from its tax cooperation watchlist – which was the original motivation behind the changes to the FSIE regime. The updated regime will come into force on January 1, 2024.

Other Features
companies
double taxations
reporting
taxation
transparency
Date Published: 2023-11-28
Date Taking Effect: 2024-01-01
Regulatory Framework: Inland Revenue Ordinance
Regulatory Type: information
Asset Management
information

Innovation and Technology Venture Fund adds one co-investment partner

ID 26576
On December 27, 2023, the Hong Kong Innovation and Technology Commission announced that it ...
Asset Management
consultation

Consultation on implementation of global minimum tax and minimum top-up tax in Hong ...

ID 26487
The Hong Kong government or better the Financial Services and the Treasury Bureau and the ...
Asset Management
regulation

United Nations Sanctions (Central African Republic) Regulation 2020 (Amendment) ...

ID 26321
On December 15, 2023, the Hong Kong government published a press release to announce the g ...
Asset Management
procedure

ITIB publishes Policy Statement on Facilitating Data Flow and Safeguarding Data ...

ID 26170
The Hong Kong government has published a press statement to inform that the Innovation, Te ...
  • Topic Filter

    Top Tag Search
    Top Tag Search
    Top Tag Search
    Top Tag Search
You are on the training version of RISP core with limited functions and data. Please subscribe to RISP core for professional or academic use. We supply free real time datasets for approved academic research; professional subscriptions start at 950€ plus VAT per annum.

Compare Listings