Bloomberg quotes Gaven Cheong on proposed Hong Kong tax exemptions on carried interest
min readHong Kong’s proposed expansion of tax exemptions on carried interest is prompting renewed attention from fund managers, family offices and financial institutions as the city looks to strengthen its position as a regional asset and wealth management hub. The proposed changes form part of a wider tax bill currently before lawmakers, with the potential to extend relief beyond private equity to hedge funds and other investment structures.
The proposals have generated significant market interest, particularly around which firms and employees may qualify for preferential treatment. Bloomberg reports that investment banks, hedge funds and family offices are examining the implications of the bill, while questions remain over the treatment of proprietary trading firms, family office structures and performance-based remuneration.
According to Bloomberg, many fund managers are waiting to see how the final rules develop before making major decisions, while the tax bill remains subject to further legislative steps later this year. The proposed changes are already influencing enquiries from fund managers and family offices considering Hong Kong structures.
Gaven Cheong, Partner in our Financial Services Regulation & Funds team, comments in Bloomberg:
There’s definitely a lot of excitement and we’ve had a lot more requests for proposals to get licenses in Hong Kong.
Read the full article in Bloomberg here.
