The latest “CWK Global Snapshot” document comes out for download now. This document provides essential insights and key points of Foreign-Sourced Income Exemption (FSIE) regime that are crucial for your understanding.
Hong Kong has recently made changes to its Foreign-Sourced Income Exemption (FSIE) regime for passive income in line with international efforts to combat cross-border tax evasion and prevent double non-taxation. These changes, as per the effective Ordinance starting from 1 January 2023, have significant implications for the market.
The Foreign-Sourced Income Exemption (FSIE) regime encompasses various types of specified foreign-sourced income, such as disposal gains from the sale of equity interests in an entity, originating from a territory outside of Hong Kong. Under the 2023 Amendment Bill, the definition of disposal gain has been broadened to encompass gains or profits obtained from the sale of assets and properties.
To gain a comprehensive understanding of these noteworthy reforms and their potential impact, check this out by the link below.