The Hong Kong SAR (HKSAR) government released a consultation paper to selected stakeholders, seeking their feedback on proposed improvements to the preferential tax regimes. These enhancements focus on funds, family-owned investment holding vehicles (FIHVs) managed by single family offices (SFOs), and carried interest.
The consultation ends on 3 January 2025.
The paper follows the 2024-25 Budget Speech announcement that the government plans to enhance tax benefits for the asset and wealth management industry to attract more funds and family offices to HKSAR.
Earlier, Hong Kong announced its plans to eliminate taxes on investment gains from cryptocurrencies and other alternative assets to benefit hedge funds, private equity firms, and family offices.
Attracting global family offices and asset owners to Hong Kong will help bring in more capital and drive ancillary economic activities. We have implemented a number of measures, including providing tax concessions for qualifying transactions of family-owned investment holding vehicles managed by single family offices in Hong Kong, and streamlining the suitability assessment when dealing with sophisticated professional investors.
