April 12, 2021
Hong Kong proposes to allow a tax deduction for foreign taxes charged on gross income basis
The Hong Kong Government introduced the Inland Revenue (Amendment) (Miscellaneous Provisions) Bill 2021 (the Bill) on 19 March 2021. The Bill proposes to allow a tax deduction for foreign taxes charged on a gross income basis. Subject to the passage of the Bill by the Legislative Council, the provisions of the Bill will apply to tax years beginning on or after 1 April 2021.
The proposed Bill seeks to:
For additional information with respect to this Alert, please contact the following:
Ernst & Young Tax Services Limited, Hong Kong
Ernst & Young LLP (United States), Hong Kong Tax Desk, New York
Ernst & Young LLP (United States), Asia Pacific Business Group, New York