Hong Kong plans to exempt private equity funds, hedge funds, and ultra-high-net-worth individuals from taxation on cryptocurrency, private credit investments, and other asset gains.

This week, the Hong Kong government stated in a 20-page proposal that taxes are 'one of the main considerations' for asset management companies when deciding on their business locations, and the government hopes to create a 'favorable environment' for them. According to the proposal, the Hong Kong government aims to expand the scope of tax-exempt investments, including private credit, overseas real estate, and carbon emission allowances. The government is conducting a six-week consultation on the plan.

Patrick Yip, Vice Chairman of Deloitte China and International Tax Partner, who specializes in family office business, stated, 'This is an important step in enhancing Hong Kong's status as a financial and cryptocurrency trading center.' He added that currently, some family offices in Hong Kong allocate as much as 20% of their portfolios to digital assets, which is 'not insignificant.'