By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > Hong Kong plans crypto tax break for hedge funds and billionaire families
News

Hong Kong plans crypto tax break for hedge funds and billionaire families

News Room
Last updated: 2024/11/28 at 2:35 AM
By News Room
Share
4 Min Read
SHARE

Stay informed with free updates

Simply sign up to the Cryptocurrencies myFT Digest — delivered directly to your inbox.

Hong Kong plans to exempt private equity funds, hedge funds and the investment vehicles of the super-rich from paying tax on gains from cryptocurrencies, private credit investments and other assets, as it seeks to become a top offshore finance hub.

In a 20-page proposal, which was circulated this week and seen by the Financial Times, the Chinese territory’s government said taxation is “one of the key considerations” for asset managers when deciding where to base their operations and it wanted to create a “conducive environment” for them.

Hong Kong has sought to position itself as a centre for crypto businesses. Bitcoin has surged since Donald Trump won the US presidential election this month, with investors betting his return to the White House will boost the crypto industry after he championed it on the campaign trail.

The government wants to expand the range of tax-exempt investments to also include private credit, overseas property and carbon credits, according to the proposal. It is running a six-week consultation on the plans.

The proposal comes as regional rivals Hong Kong and Singapore are fighting to boost their position as top offshore finance destinations. They have been battling to woo billionaires and investors and have set up new lightly-taxed fund structures that allow them to hold large pools of capital.

If implemented, Hong Kong’s new tax exemption proposals would provide “certainty” to family offices and investors, said Patrick Yip, vice chair and international tax partner at Deloitte China who specialises in family offices.

“This is an important step in boosting Hong Kong’s status as a financial and crypto trading hub,” said Yip. Some family offices in the city currently allocate up to about 20 per cent of their portfolio to digital assets, which is “not insignificant”, he added.

Many wealthy Chinese individuals have been setting up private investment vehicles outside of mainland China as President Xi Jinping cracks down on flagrant displays of wealth. But Singapore’s campaign against money laundering has made some investors more wary of the city-state, as more stringent due diligence checks have slowed the process of opening family offices, according to private bankers and lawyers.

Hong Kong is also competing with Singapore to attract investors launching funds. Fund launches in the Chinese territory have been slower than in Singapore, according to official data.

“These changes are designed to put Hong Kong on a par with Singapore or Luxembourg, in that there’s no risk of the fund being subject to tax,” said Darren Bowdern, head of asset management tax for Asia at KPMG, about the proposal.

The Chinese territory has been promoting the “open-ended fund company”, low-tax legal structures that can hold a pool of assets and multiple sub-funds. As of October, investors have launched over 450 of such funds, according to data from the city’s government.

Meanwhile, Singapore in 2020 introduced the variable capital company, a new corporate structure for investment funds. There are more than 1,000 of the funds in the Southeast Asian country.

UBS chief executive Sergio Ermotti warned this year that Switzerland could lose its global wealth management hub crown to Hong Kong, which he said had been making “great progress” alongside Singapore in the sector.

Read the full article here

News Room November 28, 2024 November 28, 2024
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
US multinationals on track for minimum tax reprieve after G7 deal

The world’s leading economies have agreed a deal to spare the US’s…

Why is the right so fascinated with fantasy literature?

Stay informed with free updatesSimply sign up to the Politics myFT Digest…

Iran holds funeral procession for top commanders killed in Israeli strikes

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Traders bet on interest rate cuts from Jay Powell’s successor at the Fed

Stay informed with free updatesSimply sign up to the US interest rates…

Israel’s Benjamin Netanyahu weighs his next move after Iran war

After Israel launched its war on Iran, Benjamin Netanyahu seemed to be…

- Advertisement -
Ad imageAd image

You Might Also Like

News

US multinationals on track for minimum tax reprieve after G7 deal

By News Room
News

Why is the right so fascinated with fantasy literature?

By News Room
News

Iran holds funeral procession for top commanders killed in Israeli strikes

By News Room
News

Traders bet on interest rate cuts from Jay Powell’s successor at the Fed

By News Room
News

Israel’s Benjamin Netanyahu weighs his next move after Iran war

By News Room
News

Time to give the euro a glow-up

By News Room
News

Chinese phonemaker touts 200,000 electric SUV orders in 3 minutes

By News Room
News

The eternal dilemma of how to tax the super-rich

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?