The Hong Kong Inland Revenue Department has published a frequently asked question (FAQ) on the tax treatment of Interest Income from Foreign Debt Instruments. --- Q: Is the interest income derived by a fund, family-owned investment holding vehicle (FIHV) or its special purpose entity (SPE) from foreign debt instruments chargeable to profits tax? A: Foreign debt instruments refer to the debt instruments issued by entities located outside Hong Kong (e.g. sovereign bonds issued by foreign jurisdictions and corporate bonds issued by foreign companies). Generally, such instruments involve simple loans of money with the provision of credit provided outside Hong Kong....