Hong Kong is set to examine tax concessions to attract global funds.
The Financial Secretary of the Special Administrative Region, Paul Chan Mo-po, said that tax incentives would help Hong Kong compete with other fund management centres such as London and Southeast Asian rival Singapore.
The remarks came soon after the Financial Services Development Council urged the government to review the tax concessions arrangement, to make it more business-friendly to the private equity and venture capital funds industry. The comprehensive review will include the feasibility of introducing limited partnership for private equity funds.
Home Grown
The council, a government-appointed advisory body, urged the government to extend the tax concessions to private equity funds’ investments in private companies, saying that it would encourage investments and business especially for the city’s «home grown» local companies and start-ups.
Chan stressed the requirements for international tax cooperation have been increasing, with particular emphasis on enhancing tax transparency and combating cross-border tax evasion. «If Hong Kong is not perfect for tax arrangements, even if the legal framework of Hong Kong can accept different fund products, it will only be futile,» Chan Mo-po said.
