Hong Kong’s plan to expand tax concessions for single-family offices, along with the rapid growth in the number of wealthy people in China and Asia, will elevate the city’s status as a hub for such investment vehicles, bankers say.
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In his policy address in October, Chief Executive John Lee Ka-chiu pledged to expand tax concessions for single-family offices. The expansion plan is now being consulted with industry players before a change in law is made.
“We are thrilled with the proposed expansion of the scope of tax-exempt investments to cover a wider range of assets, such as loans, private credit investments and virtual assets,” said Anthony Lau, the Hong Kong leader of Deloitte Private, an advisory platform for high-net-worth individuals.
“The expansion of the tax concession to cover virtual assets is very much welcomed as this makes Hong Kong one of the first movers, considering that a similar tax concession regime in Singapore does not specifically cover virtual assets,” he said.
Koh Liang Heong, UBS’s head of global family and institutional wealth, also said the new tax concessions will enhance the city’s attractiveness as a family office hub.
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