HK moves closer to profits tax exemption for offshore PE funds
Monday, March 23, 2015
(EJ Insight by Myssie You) – Hong Kong has taken a step forward in strengthening its position as a key private-equity (PE) hub in the region.
On Friday, the government gazetted the Inland Revenue (Amendment) Bill 2015 that seeks to extend to PE funds the profits tax exemption that is granted for offshore funds.
John Levack, chairman of the technical committee at Hong Kong Venture Capital and Private Equity Association (HKVCA), welcomed the move, saying that the administration is on the right track in promoting the PE industry.
“Hong Kong is adjusting its treatment of investment funds, as other fund hubs have done, to remain competitive in an attractive part of fund management sector,” Levack told EJ Insight.
Hong Kong has become a major hub for PE players in Asia, with the city’s efficient capital markets, deep professional talent and proximity to mainland China driving the growth in recent years."
