The Hong Kong government plans to provide tax exemptions for private equity funds, hedge funds, and ultra-rich individuals, covering gains from cryptocurrencies, private credit investments, and other assets, to strengthen its position as a leading offshore financial hub globally.
(Financial Times) reported on Thursday that the Hong Kong government emphasized in a 20-page proposal that the tax system has a significant impact on asset management firms' location decisions. To attract more capital inflow, the government hopes to create a more attractive investment environment.
According to the proposal, the Hong Kong government hopes to expand the scope of tax-free investments, including private credit, overseas real estate, and carbon credits. The Hong Kong government is conducting a 6-week consultation on the plan.
Patrick Yip, Vice Chairman of Deloitte China and International Tax Partner, specializing in family office business, stated that if this plan is implemented, Hong Kong's new tax exemption proposal will provide 'certainty' for family offices and investors.
He pointed out: 'This is an important step in enhancing Hong Kong's status as a financial and cryptocurrency trading center.'
Patrick Yip added that currently some family offices in Hong Kong allocate up to about 20% of their investment portfolios to virtual assets, which is 'not insignificant'.
"Hong Kong plans to expand the scope of tax exemptions, with hedge funds and ultra-rich investors' profits from cryptocurrency proposed to be tax-free" was first published in (Blockguest).
