Latest tax updates on SG’s Foreign-Sourced Disposable Gains Tax, HK’s Onshore Equity Disposable Gains, and more!

18 January 2024

All the Latest Tax Policies and Amendments from Around the Region

Welcome to the first issue of BoardRoom’s Tax Insights for 2024. With the recent tax changes in Malaysia, our Tax team will be conducting a complimentary webinar to help employers and directors navigate these updates. This issue will also cover Singapore’s recently announced Foreign-Sourced Disposal Gains Tax Regime and Hong Kong’s Tax Certainty Enhancement Scheme for Onshore Equity Disposal Gains.

Take Workplace Performance to The Next Level with Employee Share Option Plans

In a recent report, it was found that over 80% of companies in Asia use employee share plans as a strategy for growth. BoardRoom explores the potential benefits and drawbacks of employee share options plans (ESOPs) for your business as a strategy for growth. Discover their possible pros and cons here.

Malaysia

Complimentary Tax Webinar on 31 January
With all the changes in the tax landscape in Malaysia, the obligation to stay abreast falls on the company's officers and directors. How will these changes affect the directors and the company in general?

Join us in our upcoming complimentary webinar with our team of experts as they share more on the different tax obligations that employers cannot overlook, to the tax changes announced during the recent Budget that may impact your organisation’s bottom line. Register now to secure your spot.

Date: 31 January 2024
Time: 2p.m – 3.30p.m

Singapore

Foreign-Sourced Disposal Gains Tax Regime
On 8 December 2023, the IRAS has issued a new e-Tax Guide for Tax Treatment of Gains or Losses from the Sale of Foreign Assets. Currently, gains from the sale of foreign assets that are capital in nature are not taxable. In a move to address international tax avoidance risks relating to non-taxation of disposal gains in the absence of real economic activities, Singapore has recently amended their foreign-sourced income regime to subject foreign-sourced disposal gains to tax under specific circumstances.

The e-guide explains the income tax treatment of gains or losses from the sale or disposal of movable or immovable property that are situated outside of Singapore. Learn more about it in our report.

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Hong Kong

Hong Kong Implements Tax Certainty Enhancement Scheme for Onshore Equity Disposal Gains
Hong Kong enacted the Inland Revenue (Amendment) (Disposal Gain by Holder of Qualifying Equity Interests) Ordinance 2023 on 15 December 2023. The ordinance introduces the tax certainty enhancement scheme for onshore equity disposal gains which includes details of the tax treatment of gains from the disposal of equity interests. Under the scheme, gains on equity interests held for at least 24 months and constituting no less than 15% of the investee entity's total equity interests will be deemed non-taxable and certain exclusions will apply.

The scheme will be applicable to the gains where the disposal occurs on or after 1 January 2024 and will position Hong Kong as an international business and investment centre. Read all about it in our report.

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