October 2023 - The Inland Revenue Bill for expanding the FSIE regime to cover asset disposal gains is published
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Oct 2023 - Expanding the FSIE regime
In December 2022, EU updated its Foreign-sourced Income Exemption (“FSIE”) Guidance which requires that disposal gains to be subject to the economic substance requirement (“ESR”). Hong Kong is requested by the EU to further amend its tax treatments for foreign sourced disposal gains in compliance with the updated FSIE Guidance by the end of 2023 for implementation with effect from January 2024.
In consequence, the Inland Revenue (Amendment) (Taxation on Foreign-sourced Disposal Gains) Bill 2023 (“the Amendment Bill”) was gazetted on 13 October 2023 to refine the FSIE regime.
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Pauline Leung Partner, Tax Services - Hong Kong
