【Hong Kong Plans to Exempt Professional Investors from Cryptocurrency Investment Income Tax】

According to reliable sources, as Hong Kong strives to enhance its appeal as a wealth management center, the city plans to exempt hedge funds, private equity funds, and certain family offices from investment income tax on cryptocurrencies and other alternative assets. In a consultation document revealed by Reuters, the Financial Services and the Treasury Bureau proposed to expand the capital gains tax exemption to cover assets such as overseas properties, carbon credits, private credit, and virtual assets, applicable to investment instruments for private funds and eligible single family offices.