EYEY

Hong Kong may implement substance requirements related to offshore claims

|Tax Alerts, Legislation & Policy, Na ...|Hong Kong, European Union
Hong Kong, European Union

Background

Recently the European Union (EU) completed its review of the foreign-source income exemption (FSIE) regime in Hong Kong. Though the EU acknowledges that FSIE regimes are not in themselves problematic, it is concerned that corporates with no substantial economic activity in Hong Kong are not subject to tax in respect of certain offshore passive income (such as interest and royalties),1&nb…

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