Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026 gazetted
The Government published in the Gazette today (June 12) the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026 to enhance the preferential tax regimes for privately offered funds, family-owned investment holding vehicles (FIHVs) managed by eligible single family offices and carried interest, with a view to attracting more funds and family offices to establish a presence in Hong Kong.
Photo source: reference image
The Bill covers amendments to the Inland Revenue Ordinance in areas such as: (i) expanding the definition of "fund"; (ii) expanding the scope of qualifying investments; (iii) removing the 5 per cent threshold requirement for incidental transactions; (iv) relaxing the tax exemption treatment for special purpose entities (SPEs) and family-owned SPEs; and (v) introducing a series of enhancement measures to the tax regime for carried interest. The Bill will also introduce, under the unified tax regime for funds, a tax reporting mechanism as well as economic substance requirements similar to those under the tax concession regime for FIHVs.
"Hong Kong is now the world's largest cross-boundary wealth management centre. The National 15th Five-Year Plan clearly supports Hong Kong in continuing to strengthen its functions as an international asset and wealth management (WAM) centre. In this connection, the Government has long been committed to reinforcing our leading position in this area through providing a competitive tax environment. The relevant amendments under the Bill will attract more funds and family offices to set up and operate in Hong Kong, and in turn create new opportunities for Hong Kong's WAM industry. In particular, this would help further attract private credit investment activities in the region, while complementing Hong Kong's development in areas such as digital assets and trading of precious metals and commodities," a spokesperson for the Financial Services and the Treasury Bureau said.
The Bill will be introduced into the Legislative Council for first reading on June 24.
The Legislative Council, Photo by Bastille Post
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations
Hong Kong Customs and the Fire Services Department (FSD) mounted a territory-wide blitz operation targeting illicit fuel activities on June 10. During the operation, officers of the two departments detected two related cases and seized about 3 200 litres of illicit motor spirit, with an estimated market value of about $104,000 and a duty potential of about $20,000. Two persons were arrested, and one vehicle connected with one of the cases was also seized.
In the afternoon on June 10, during a joint anti-illicit fuel operation in Tung Chung, officers of Customs and the FSD raided an illegal fuelling station at Shek Lau Po and seized about 1 600l of illicit motor spirit and a batch of oil filling equipment. The case is under investigation. The likelihood of arrests is not ruled out.
In the evening on the same day, Customs and FSD officers continued the joint operation in Kwai Chung and raided an illegal mobile fuelling station at the roadside of Kwai Tai Road. About 1 600l of illicit motor spirit, a batch of oil filling equipment and a lorry connected with the case were seized. Two non-local men, aged 57 and 33, were arrested. They were suspected to be the operator of the illegal fuelling station and the driver of the lorry used to transport illicit motor spirit respectively.
They were suspected of dealing with illicit fuel, violating various ordinances including the Dutiable Commodities Ordinance(DCO) (Cap. 109) and the Dangerous Goods Ordinance, and have been charged with dealing with goods to which the DCO (Cap. 109) applies.
According to the DCO, any vehicle found conveying illicit motor spirit, as well as any tools, equipment, or articles used or intended to be used in connection with the commission of related offences, shall be liable to forfeiture whether or not any person is convicted of any offence. Anyone involved in dealing with, possession of, selling or buying illicit motor spirit commits an offence. The maximum penalty upon conviction is a fine of $1 million and imprisonment for two years.
Under the Fire Services (Fire Hazard Abatement) Regulation, it is an offence to possess or control any controlled substance for the business purpose of transferring it into vehicle fuel tanks. The Dangerous Goods Ordinance also provides that no person shall manufacture, store, convey or use any dangerous goods unless they possess a licence or exemption granted. Upon conviction, the maximum penalty for the first offence is a fine of $100,000 and imprisonment for six months. For each subsequent offence, the maximum penalty will be a $200,000 fine and imprisonment for one year.
Customs and the FSD will continue to take enforcement action against illicit fuel activities. Members of the public may report suspected illicit fuel activities via the Customs' 24-hour hotline 182 8080 or the FSD's 24-hour hotline 5577 9666. The public may also report through the Illicit Fuelling Activities on the Fire Hazard Electronic Complaint Portal of the FSD(fhcp.hkfsd.gov.hk).
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations Source: HKSAR Government Press Releases
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations Source: HKSAR Government Press Releases
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations Source: HKSAR Government Press Releases
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations Source: HKSAR Government Press Releases
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations Source: HKSAR Government Press Releases
Hong Kong Customs and Fire Services Department shut down two illegal fuelling stations Source: HKSAR Government Press Releases
