Description

Ever since the issuance of consultation paper by the Hong Kong Government in August 2020 about the proposed tax concession regime on carried interest, industry players have been excitedly looking forward to the coming of further details about the tax concession.

The long-awaited next step has finally come – Financial Services and the Treasury Bureau issued the Administration’s paper on “Tax concession for carried interest” in December 2020, and the relevant legislative proposal was discussed at the Legislative Council Panel on Financial Affairs on 4 January 2021. On 28 January 2021, the Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Bill 2021 (“the Bill“) was published and subject to readings by Legislative Council to become effective.

The Bill is broadly welcomed by the industry, and is expected to strengthen Hong Kong’s competitiveness in attracting private equity (PE) or venture capital (VC) managers. This webinar will cover the following aspects of the Bill:

– Key requirements of the tax exemption regime

– Implications to typical offshore fund structure / operational model