Hong Kong Moves to Expand Tax Breaks for Funds to Bolster Wealth Hub Appeal

Hong Kong plans to exempt performance fees and carried interest from taxes for alternative investment funds under a proposed legislative amendment aimed at strengthening the city’s appeal as an asset-management hub.

A bill gazetted by the government in June would extend tax concessions to hedge funds, private credit funds and digital-asset funds. Under the proposal, performance fees earned at the fund level would be exempt from profits tax, while fund managers would be exempt from salaries tax on carried interest and performance fees.