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

 

[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]

only affects passive income companies

Which is the majority of all HK companies i guess.

 

[Rulentiy]

EU,s death convulsions

 

[jafo]

EU fu©kers at work!

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]

Why is the EU concerned about this?

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]

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."

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]

Are they worried that there are people, EU-carrying passport holders,

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.

how do they deal with EU-carrying passport holders who move to Monaco or Dubai?

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]

how do they deal with EU-carrying passport holders who move to Monaco or Dubai?

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

 

[jafo]

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

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.