Hong Kong Publishes Revised Departmental Interpretation and Practice Notes on Taxation of Financial Instruments and Foreign Exchange Differences

The Hong Kong Inland Revenue Department has published a revised version of Departmental Interpretation and Practice Notes (DIPN) No. 42, which contains profits tax guidance on the taxation of financial instruments and foreign exchange differences.

The revised version contains updates to reflect the legislative changes made by the Inland Revenue (Amendment) (No. 2) Ordinance 2019. This includes the enactment of sections 18G to 18L of the Inland Revenue Ordinance, which allows taxpayers to e…