Overview (Program Summary)
On 1 January 2023, the Inland Revenue (Amendment) (Taxation on Specified Foreign-sourced Income) Ordinance 2022 (the Amendment Ordinance) came into operation.
Under the new Foreign-sourced Income Exemption (FSIE) regime, certain foreign-sourced income arising in or derived from Hong Kong may be chargeable to profits tax when it is received in Hong Kong. Tax exemptions currently granted to specified types of foreign-sourced passive income received in Hong Kong by multinational enterprises may no longer be available unless certain conditions such as the economic substance requirements and nexus approach are met. Specified foreign-sourced passive income being affected includes interest, dividend, disposal gain on equity interests and income from intellectual properties. The Amendment Ordinance also amended the IRO to provide for relief against double taxation in respect of certain foreign-sourced income and transitional matters, according to the latest updates from Inland Revenue Department (IRD).
To facilitate implementation of the new regime, the IRD has issued administrative guidelines and provided instructions for applying for advance ruling for entities that wish to have more certainty on tax treatments and ensure compliance with the economic substance requirements.
We are pleased to have invited Mr. Kwan Yu, Tax Partner and Mr. Yiu-Hong Chung, Tax Director at Deloitte China to provide an update of the legislative provisions as given in the Ordinance. The speakers will also share insights on its impact on businesses as well as possible actions that can be considered by affected entities facing the refined FSIE regime.
Kwan Yu, Tax Partner, Deloitte China
Kwan Yu is a Tax Partner with Deloitte China’s International & M&A Tax Services based in Hong Kong and has over 20 years of international tax experience in the U.S. and Hong Kong. He is also a member of the Asia Pacific International Core of Excellence (AP ICE) which is a core group of senior tax professionals that provides international tax services to Asia Pacific based companies investing abroad as well as multinational companies investing in the region. Kwan is a member of the AICPA and a CPA licensed in the State of Virginia.
Yiu-Hong Chung is a Tax Director with Deloitte China’s International & M&A Tax Services based in Hong Kong and he provides tax advice to multinational corporate clients who wish to invest in China and Hong Kong, including structuring and acquisition issues, supply chain planning, cross-border transfer pricing strategies, corporate reorganizations, and tax/regulatory compliance matters.
Yiu-Hong holds a B.A. from the Chinese University of Hong Kong. He is a member of The Hong Kong Institute of Certified Public Accountants (HKICPA).
Peter Chen, Partner, Yang Chan & Jamison LLP, an independent Hong Kong Law Firm associated with Deloitte Legal
Peter Guang Chen is both a certified public accountant and an attorney with more than 20 years of experience, and who is practicing in Hong Kong. Peter has advised multinational companies on their investment structuring, regulatory, and business issues; mergers, acquisitions, reorganizations in the U.S., China and the Asia Pacific region. He has represented both companies and individuals to resolve tax disputes with tax authorities in the U.S. and China. Peter has also advised US, China and Hong Kong high net worth individuals on the structuring of trusts, foundations in the income tax and estate planning context, as well as advising them on China and international tax issues. Previously, Peter was with a major economic consulting firm and also was a tax partner at Deloitte, where he was responsible for the China Desk in NYC. He is a frequent speaker and writer on international tax issues.
Peter is admitted to practice as attorney in United States (New York & New Jersey), United States Tax Court, Federal District Court (SDNY, EDNY, NJ). He is also licensed as CPA in New York and New Jersey. Peter is also admitted to practice law in Hong Kong as a solicitor.
Thursday, 16 February 2023
12:30 pm to 1:00 pm - Light Lunch
1:00 pm to 2:00 pm - Presentation and Networking
35/F, One Pacific Place, Admiralty, Hong Kong
Hong Kong qualified lawyers are eligible to receive 1 CPD point for this seminar, subject to approval from the Law Society of Hong Kong.