Hong Kong (Passive) Foreign Source Income Exemption to end 1 Jan 2023

[Martin Everson]

https://www.sannegroup.com/our-thin...-hong-kong-s-foreign-source-income-exemption/
https://www.pwc.com/us/en/services/...finements-fsie-regime-for-passive-income.html

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Marzio]

EU fu©kers at work!

 

[RealDude]

Who‘s next?

 

[manukahoney]

It seems that the change only affects passive income companies, not the trading ones.

 

[Marzio]

Which is the majority of‌ all HK companies i guess.

 

[Rulentiy]

EU,s death convulsions

 

[jafo]

Why is the EU concerned about‌ this?
How would an EU citizen be affected if he/she doesn't live in the EU‍ tax country or Hong Kong? Say they live in Monaco

 

[Marzio]

From the article‌ "The Hong Kong SAR Government recently launched a consultation on a proposal to refine‍ Hong Kong’s foreign source income exemption (FSIE) regime for passive income in response to the⁠ European Union’s concern over potential double non taxation arising from tax exemption for offshore passive⁤ income in Hong Kong."

 

[Paul Tudor Jones]

Also relevant to the subject:
https://harrisbricken.com/chinalawb...rnational-business-stick-a-fork-in-it-part-2/

 

[jafo]

I read that too but sounds like a word salad to me. Are they worried that⁠ there are people, EU-carrying passport holders, who have found a loophole to keep all of⁤ their earnings?
If affirmative, how do they deal with EU-carrying passport holders who move to⁣ Monaco or Dubai?

 

[Marzio]

I don't think they are worried only about EU citizens, their mission is to promote‍ fair taxation worldwide so nobody should be able to take advantage of the passive income⁠ exemption.

I don't think they are too worried about Monaco because⁤ its limited real estate is a natural moat to the number of people that could⁣ take advantage of the tax exemption.

Dubai instead is constantly being threatened of being put⁢ once on the grey list, once in the yellow list and so on.

 

[Onassis]

They will "fix" that by imposing citizenship-based taxation across the EU‌ 😉

 

[jafo]

I don't know about others, but I would not bat an eye at renouncing‍ EU citizenship and getting one from anywhere else (I have just one that is NOT⁠ EU). I'll even go stateless if I have to.

 

[Martin Everson]

Guys lets stick to topic here.