Hong Kong Bill Would Expand Fund, Family Office and Carried-Interest Tax Concessions
Hong Kong SAR China
Jul 30, 20261 sources
Key Takeaways
- 01The Bill would expand Hong Kong’s fund tax exemption to include digital assets, overseas real estate, loans, carbon credits and several other investment categories.
- 02Pension funds, endowment funds, certain state-linked single-investor funds and qualifying funds-of-one could access the regime without using a licensed manager or authorised financial institution.
- 03A qualifying fund-of-one would require at least HK$240 million in qualifying investments and no day-to-day investor control over property management.
- 04The proposal would remove the existing 5% limit on profits from incidental transactions for funds and their special purpose entities.
- 05The Bill was introduced on 26 June 2026 and, if enacted, would apply retrospectively from 1 April 2025.
Hong Kong published the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026 on 12 June 2026. The Bill would broaden the tax-exemption regime for privately offered funds and family-owned investment holding vehicles (FIHVs), and enhance the carried-interest concession.