The Proposed New Private Funds Exemption and Other Developments Affecting the Taxation of Funds

On December 7, 2018, the Hong Kong Government introduced new legislation to revamp the basis upon which private funds, including hedge funds and  private equity funds, would be exempt from tax. As proposed, private funds may qualify for tax relief even if they are resident in Hong Kong and even if they invest in Hong Kong businesses. The legislation levels the playing field between Hong Kong incorporated open-ended fund companies on the one hand and Cayman and other offshore domiciled funds on the other hand. Though the existing offshore funds exemption will remain on the books, private funds will generally no longer qualify for relief under that exemption. As a result, it is important for existing private funds to ensure that they comply with the new legislative proposals to maintain tax neutrality going forwards. In this seminar, we outline the proposed legislation and discuss the conditions which must be met to qualify for relief.

Please join us for the lunch time seminar as we outline the proposed legislation and discuss the conditions which must be met to qualify for relief.

Speaker

Timothy Loh, Managing Partner

Mr. Loh has extensive experience advising hedge funds, private equity funds and their managers on their formation and operation including as regards the taxation of funds.

On December 7, 2018, the Hong Kong Government introduced new legislation to revamp the basis upon which private funds, including hedge funds and  private equity funds, would be exempt from tax. As proposed, private funds may qualify for tax relief even if they are resident in Hong Kong and even if they invest in Hong Kong businesses. The legislation levels the playing field between Hong Kong incorporated open-ended fund companies on the one hand and Cayman and other offshore domiciled funds on the other hand. Though the existing offshore funds exemption will remain on the books, private funds will generally no longer qualify for relief under that exemption. As a result, it is important for existing private funds to ensure that they comply with the new legislative proposals to maintain tax neutrality going forwards. In this seminar, we outline the proposed legislation and discuss the conditions which must be met to qualify for relief.

Please join us for the lunch time seminar as we outline the proposed legislation and discuss the conditions which must be met to qualify for relief.