Hong Kong Tax News Flash
Nov 2024, Issue 20
Consultation underway for proposed enhancements to family office tax concession regime
Determined to establish Hong Kong as a leading hub for family offices, the Financial Secretary announced in the 2024/25 budget that enhancements would be made to the one-year-old tax concession regime for family-owned investment holding vehicles (FIHVs).
On 25 November 2024, the Financial Services and Treasury Bureau (FSTB) issued a consultation paper outlining the proposed enhancements to the unified fund exemption regime, the FIHV tax concession regime and the carried interest tax concession regime. This industry consultation aims to gather feedback from stakeholders on the proposed changes. The consultation period will end on 3 January 2025.
Encouragingly, the FSTB has adopted several of PwC’s recommendations, including expanding the scope of qualifying assets to cover virtual assets and removing the 5% threshold on incidental income.
This news flash summarises the proposed enhancements to the FIHV tax concession regime and our observations thereon.
Contact us
South Private Clients and Family Office Tax Leader, PwC Hong Kong
Tel: +[852] 2289 3816
South China and Hong Kong Tax Leader, China M&A Tax Leader, PwC Hong Kong
Tel: +[852] 2289 5616
