In response to the European Union's Code of Conduct Group, Hong Kong, Singapore and Malaysia have amended their local income tax laws to introduce a capital gains tax on the sale of assets.
In the case of Hong Kong and Singapore, the capital gains tax applies to the sale of offshore capital assets, while the capital versus income distinction continues to apply to the sale of onshore capital assets.
Hong Kong already introduced the capital gains tax on gains from the sale of offshore equities in 2023 but had to expand the scope of the capital gains tax to offshore non-equities to comply with the European Union requirements. The sale of offshore IP rights is also within the scope of the new capital gains tax.
Malaysia has introduced a capital gains tax on gains derived from the sale of both onshore and offshore capital assets, albeit at different tax rates, and a temporary exemption of the new tax is provided until 1 March 2024.
Interestingly, transactions in Malaysian real property by corporations are now subject to the new capital gains tax rule rather than being taxed under the Real Property Gains Tax Act.
To view the full article, please click here.
Visit us at mayerbrown.com
Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.
© Copyright 2024. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
