The Hong Kong Government introduced the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 (the Bill) on 19 March 2021. The Bill proposes to allow a tax deduction for foreign taxes charged on a gross income basis. Subject to the passage of the Bill by the Legislative Council, the provisions of the Bill will apply to tax years beginning on or after 1 April 2021.
The proposed Bill seeks to:
Allow a tax deduction for foreign taxes on non-interest income (e.g., royalties) that were charge…