Hong Kong to further revise its foreign source income exemption regime to expand scope of disposal gain

Hong Kong’s refined foreign source income exemption (FSIE) regime will be further revised to expand the scope of disposal gains on more asset classes.

The related legislative amendments are expected to be enacted by the end of 2023 with the revised FSIE regime to enter into force from January 2024.

Multinational enterprises (MNEs) should review their Hong Kong asset profile to assess the potential tax implications.