Hong Kong Proposes Tax Rule Changes for Asset Managers

Hong Kong plans to allow asset managers to earn performance fees tax-free across more investments. A new bill would expand rules beyond private equity deals.

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Hong Kong is reportedly moving forward with plans to implement tax cuts for asset managers, a move aimed at bolstering its status as a premier financial hub. According to reports from the Financial Times, the city is set to revise its regulations concerning carried interest, potentially allowing investment professionals to earn performance-based fees entirely free of tax.

A view of the skyline and architectural landscape of Hong Kong, captured in July 2021. REUTERS/Tyrone Siu
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