Hong Kong Tax News Flash

Dec 2022, Issue 18

Bill on refined FSIE regime passed

Further to the gazettal of the Inland Revenue (Amendment) (Taxation on Specified Foreign-sourced Income) Bill 2022 (Bill) which introduces refinements to Hong Kong’s foreign-sourced income exemption (FSIE) regime, the Bill was passed by the Legislative Council (LegCo) on 14 December 2022 together with certain amendments subsequently made to the Bill through the Committee Stage Amendments (CSA). It is expected that the Bill will be gazetted as the amendment ordinance (Ordinance) on 23 December 2022. The Ordinance will come into operation on 1 January 2023.

This News Flash highlights the key updates since the gazettal of the Bill and our observations. For the background and earlier developments of the proposed refinements to the FSIE regime, please refer to our previous News Flashes.