Hong Kong Tax Newsflash

The Bill¹ for the tax certainty enhancement scheme for onshore gains on disposal of equity interests was passed by the Legislative Council yesterday (i.e., 6 December 2023). Under the scheme, onshore disposal gains on equity interests held for at least 24 months by an investor entity that constitute not less than 15% of an investee entity's total equity interests can be regarded as capital in nature and hence not taxable. The scheme will apply to disposal transactions on or after 1 January 2024 and disposal gains accrued from the year of assessment 2023/24.

For the background and details of the scheme, please refer to our Hong Kong Tax Newsflash Issue 176, Issue 191 and Issue 196.

¹ Inland Revenue (Amendment) (Disposal Gain by Holder of Qualifying Equity Interests) Bill 2023

^{Tax Newsflash is published for the clients and professionals of Deloitte Touche Tohmatsu. The contents are of a general nature only. Readers are advised to consult their tax advisors before acting on any information contained in this newsletter.}
 

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Authors

Doris Chik
Tax Partner
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dchik@deloitte.com.hk

Carmen Cheung
Senior Tax Manager
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Global Business Tax Services
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Andrew Zhu
Tax Partner
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andzhu@deloitte.com.cn

Hong Kong
Raymond Tang
Tax Partner
+852 2852 6661
raytang@deloitte.com.hk