To address the concerns of the European Union ("EU") over double non-taxation, the Hong Kong government recently issued a consultation paper to stakeholders on the proposed refinements to Hong Kong's foreign source income exemption (FSIE) regime for passive income. Under the proposed FSIE regime, offshore passive income including interest, income from intellectual properties, dividends and disposal gains in relation to shares or equity interest will be deemed to be sourced from Hong Kong and chargeable to profits tax if certain conditions under the refined FSIE regime are not met.
Following the consultation, the implementation details will be finalized with a view to ensuring smooth implementation of the refined FSIE regime. The new regime will be effective from 1 January 2023.
Join our webinar, where the experts from Deloitte China will talk about the latest audit updates and tax landscape facing the refined FSIE regime on how it may impact the private equity and venture capital industry.