Ansel Yip

The concept of "smart economy" has led multinational corporations (MNCs) to view technology as a core asset. Recognizing this trend, many jurisdictions are offering various incentives to encourage technology innovation, investment and the creation of intellectual property (IP). Establishing a global IP centre that can operate across borders can help MNCs to not only recruit top talent, but also to increase their innovation capabilities and expand product exposures.

In response to the Foreign-sourced Income Exemption ("FSIE") guidance promulgated by the European Union ("EU") in December 2022, the Hong Kong Special Administrative Region ("HKSAR") government has proposed refinements to the existing FSIE Regime. For details of the existing FSIE Regime, please refer to our tax update published on 9 January 2023. Under the refined FSIE Regime, the scope of property in relation to foreign-sourced disposal gains will be expanded to cover all types of property.

Printable version Send by email PDF version In October 2021, the European Union (“EU”) placed Hong Kong (“HK”) on its “watchlist” of non-cooperative jurisdictions for tax purposes (“EU List”) over potential harmful tax practices arising from the traditional exemption from tax granted to offshore passive income, particularly where payment or recipient companies are not required to demonstrate a substantial economic presence in HK.