As published on: news.bloombergtax.com, Friday 1 December, 2023.
New regime places Hong Kong out of EU watchlist
Practitioners believe new rules may lead to double taxation
Hong Kong’s Legislative Council passed legislation Wednesday amending its foreign income tax regime to make it compliant with the EU’s anti-tax avoidance and transparency standards.
The government said Wednesday it will request that the EU remove Hong Kong from its tax cooperation watchlist “as soon as possible.” The EU placed Hong Kong on its watchlist in October 2021, fearing the potential exploitation of the offshore income tax exemption by shell companies operating in the city.