The Hong Kong budget for 2014-2015 contains tax proposals affecting the financial services sector. Among these are measures that would:

  • Propose a review of the requirements under the Inland Revenue Ordinance for interest deductions in the taxation of corporate treasury activities and to clarify the criteria for such deductions;
  • Provide for legislation to allow private equity funds to enjoy the tax exemption for offshore funds, with a consultation to begin in March 2014 on proposals to introduce an open-ended fund company structure; and

Waive stamp duty for the trading of all exchange traded funds.