Executive summary
In response to the concern of the European Union (EU) over potential double non-taxation arising from Hong Kong’s foreign source income exemption (FSIE) regime for certain passive income, Hong Kong has launched a consultation on a proposed refinement to the FSIE regime. This refinement is intended to enable Hong Kong to be removed from the EU watchlist of non-cooperative jurisdictions for tax purposes.
The related legislative bill is planned to be introduced in the last quarter o…