Hong Kong tax law update
On October 13, 2023, a draft relating to amendments to the Inland Revenue Act was tabled in Hong Kong. These amendments provide for the extension of the treatment of certain income exemptions (FSIE) to income from the sale of movable and immovable property.
FSIE regime in Hong Kong from January 1, 2023, it was limited to four types of passive income: interest, dividends, intellectual property income and income from the alienation of shares (shareholdings). Under the new rules, when these types of income are received from overseas, they will be subject to taxation in Hong Kong unless the recipient qualifies for exemption from tax under the requirements relating to existing activities. Importantly, when tax is paid in Hong Kong, the FSIE regime provides an opportunity to take into account amounts of tax paid outside Hong Kong.
On October 18, 2023, this new Bill was introduced in the Legislative Council of the Hong Kong SAR. The legislative changes are expected to take effect from January 1, 2024.
Our company can help you organize your business in Hong Kong and open a corporate account in a Chinese bank. In addition, we offer a wide range of value-added services including auditing, accounting services, company renewal, compliance and proof of funds origin.
Our team ensures that your business in Hong Kong will operate with maximum efficiency and in accordance with local and international standards.