Hong Kong financiers press for tax breaks after Singapore unveils rival scheme
Hong Kong should press ahead with its proposed tax break on carried interest, the performance fees earned by hedge fund and private equity managers, after Singapore unveiled a rival tax-exemption scheme, according to industry participants. The bill, submitted to lawmakers in June and expected to come to a vote later this year, has sparked debate in the financial industry. Some participants argue…
Hong Kong's financial sector is advocating for proactive implementation of its proposed tax break on carried interest, following Singapore's unveiling of a rival scheme, according to industry insiders. The bill, introduced in June and set for a vote later this year, has generated debate within the financial industry. Some experts argue the exemption is overly narrow, while others question the fairness of exempting high-earning fund managers from tax.
Concerns have been raised that traders might relocate to rival jurisdictions offering similar tax incentives if the bill faces delays. Jasmine Lee Shun-yi, vice-president of the Hong Kong Institute of Certified Public Accountants, emphasized the importance of the tax break in maintaining Hong Kong's status as the world's leading wealth management center and attracting global fund managers.
She believes the tax break will encourage fund managers to stay in Hong Kong, contributing to the local economy through spending on properties, education, and other expenditures. Lee stressed that fund managers carefully consider their residency choices, and the tax break could significantly benefit the city's real economy.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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