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, reported the Financial Times.
The 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, it said.
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, which is running a six-week consultation on the plans.