The Hong Kong Inland Revenue Department has announced the approval of the Inland Revenue (Amendment) (Disposal Gain by Holder of Qualifying Equity Interests) Bill 2023 by the Legislative Council on 6 December 2023. The legislation introduces a tax certainty enhancement scheme to provide greater certainty of the non-taxation of onshore gains on the disposal of equity interests that are of a capital nature. Subject to certain conditions, the scheme essentially provides that gains made by an investor entity will be treated as capital in nature and not chargeable to tax if the equity interest is held for a continuous period...