The Hong Kong Inland Revenue Department has published a frequently asked question (FAQ) on the tax treatment of Interest Income from Foreign Debt Instruments.
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Q: Is the interest income derived by a fund, family-owned investment holding vehicle (FIHV) or its special purpose entity (SPE) from foreign debt instruments chargeable to profits tax?
A: Foreign debt instruments refer to the debt instruments issued by entities located outside Hong Kong (e.g. sovereign bonds issued by foreign j…