Hong Kong enacted the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 (the New Law) on 11 June 2021.1 The New Law allows a tax deduction for foreign taxes charged on a gross income basis and applies to tax years beginning on or after 1 April 2021.
Many stakeholders had lobbied the Hong Kong Government to reinstate the Inland Revenue Department’s previous assessing practice of allowing a tax deduction for foreign taxes charged and paid on a gross income basis in respect of all…