Since the establishment of the two new fund structures, namely the Open-ended Fund Company (OFC) and the Limited Partnership Fund (LPF), the investment fund regime of Hong Kong has become more comprehensive. With 11 OFCs and over 100 LPFs already set up, Hong Kong’s status as an international asset and wealth management centre has been consolidated. The HK government plan to submit a legislative proposal in the 2nd quarter of 2021 to allow foreign investment funds to re-domicile to Hong Kong for registration as OFCs or LPFs.
For Hedge Funds:
OFC suits various types of Investment Funds. HK government will provide subsidies to cover 70% of the expenses paid to local professional service providers for OFCs set up in, or re-domiciled to Hong Kong in the coming 3 years, subject to a cap of $1 million per OFC.
For Private Equity:
An amendment bill has been introduced to provide tax concessions for carried interest issued by Private Equity funds operating in HK. Once secured the LegCo’s passage of the bill, the tax concession arrangements will apply starting from 2020-21.
For Family Offices:
To enhance our attractiveness as a hub for family offices, InvestHK and regulators will offer one-stop support services to family offices interested in establishing a presence in Hong Kong. The HK government will also review the relevant tax arrangements.
The information contained in the Hong Kong Budget Summary 2020-2021 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 situation.
Legislative proposals do not generally become law until their enactment and may be modified by the Legislative Council before enactment.
Disclaimer:
It should be noted that the information is presented in summary form and readers are advised to seek professional advice before formulating business decisions.
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