Hong Kong financiers urge tax breaks following Singapore's new scheme

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Hong Kong financial industry participants urged the government to expedite a proposed tax exemption on carried interest for hedge fund and private equity managers following the introduction of a rival scheme in Singapore. The bill, which was submitted to lawmakers in June and is awaiting a vote, became a subject of debate regarding its scope and the fairness of tax exemptions for wealthy managers. Jasmine Lee Shun-yi of the Hong Kong Institute of Certified Public Accountants stated that the tax break was essential for maintaining Hong Kong's status as a global wealth management center and for attracting international fund managers and talent.

Consequences

If the bill is delayed, financial professionals expressed concern that traders might relocate to competing jurisdictions like Singapore that offer similar incentives. Conversely, the implementation of the tax break is expected to increase Hong Kong's competitiveness in attracting global fund managers to establish their businesses and diverse talent to the region.

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