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
