Hong Kong to examine tax concessions to attract global funds, Financial Secretary says
Financial Secretary Paul Chan Mo-po said tax incentives would help Hong Kong compete with other fund management centres
The government will examine the existing tax concessions applicable to the fund industry to make Hong Kong into a diversified and competitive international fund management centre against its global counterparts, said the city’s financial chief.
The development of asset management and wealth management industries in Hong Kong is in a leading position in the Asian region, Financial Secretary Paul Chan Mo-po wrote in his blog on Sunday.
“We must ensure that Hong Kong’s tax arrangements can compete with other asset management centres,” said Chan, noting that Britain and Singapore have implemented a number of tax incentives to attract fund management companies.
“If Hong Kong is not perfect for tax arrangements, even if the legal framework of Hong Kong can accept different fund products, it will only be futile,” he said.
Once the fund managers chose a jurisdiction to undertake fund management activities, it is difficult for them to shift their business to Hong Kong in the short term, he said.
The comprehensive review will include the feasibility of introducing limited partnership for private equity funds.