On 14 February 2023, the Council of the European Union released an updated EU list regarding international tax co-operation. In light of the updated guidance on foreign-sourced income exemption (FSIE) regimes promulgated by the EU in December 2022, Hong Kong is required to fine-tune its tax legislation on the treatment of foreign-sourced capital gains by the end of 2023 for implementation with effect from 1 January 2024.
In this PwC news flash, we summarise the key implications and our observations in relation to the updated EU List.