Hong Kong Gives Funds Tax Concession to Bolster Finance Center
Wednesday, April 28, 2021
(Bloomberg by Lulu Yilun Chen) – Hong Kong passed a tax concession bill for funds to bolster its competitiveness as an investment management hub.
The Hong Kong Legislative Council approved a bill on Wednesday granting tax concessions for carried interest distributed by private equity funds operating in the city. The relief also applies to related remuneration paid to employees of such firms.
Passing the long-awaited bill is expected to fortify Hong Kong’s fund industry, helping the city preserve its edge as a financial center in a race against Singapore and Shanghai. Lawmakers are seeking to attract the growing number of buyout and venture capital firms — many benefiting from China’s tech and startup boom — and their staff and managers to settle in the city.
