Legislation providing a tax incentive for the funds industry would promote asset and wealth management activities in Hong Kong.
The proposal—the Inland Revenue (Profits Tax Exemption for Funds) (Amendment) Bill 2018—was introduced in December 2018 by the Hong Kong government to provide a new exemption from profits tax for private funds operating in Hong Kong. The legislation would allow two exemptions from Hong Kong’s profits tax:
The expanded scope of the new exemption would provide opportunities for funds with operations in Hong Kong allowing them to simplify their current operating protocols and to undertake more investment-related activities in Hong Kong.
Read a January 2019 report prepared by the KPMG member firm in Hong Kong
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.