Hong Kong still remains in the European Union (“EU”) watchlist of non-cooperative jurisdiction
Hong Kong is requested by the EU to
further amend the tax treatments of foreign-sourced disposal gains to comply with the updated FSIE Guidance by the end of 2023 for implementation in January 2024. Meanwhile, Hong Kong remains in the EU watchlist until the necessary legislative amendments are made and completed.
If Hong Kong does not comply with the updated FSIE Guidance within the specified time frame, the EU will put Hong Kong in the blacklist and Hong Kong based entities may be subject to tax related defensive measures and administrative defensive measures imposed by the EU Member States.
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