Tax Benefits for LPFs
Quite apart from tax benefits for LPF sponsors, LPFs themselves can enjoy tax exemption for profits earned from transactions in specified asset classes as well as on profits earned from transactions incidental to those qualified transactions. As a result, private equity and other funds using an LPF vehicle can obtain bright line clarity on their tax position rather than assume tax risk in structures that may result in a fund vehicle being characterized as carrying on business otherwise than in Hong Kong.
Tax Treaties
Hong Kong's extensive network of double taxation treaties helps enhance the attractiveness of LPFs for cross-border investments.
Show Video TranscriptSpotlight on Limited Partnership Funds
Tax Benefits
Did You Know series - Hong Kong LPFs for Fund Managers – Part 2
Tax Benefits
Hong Kong's LPF regime is designed to be tax-efficient.
An LPF will quality as exempt from profits tax if it satisfies all of the conditions of the unified funds exemption.
Interests in an LPF are not charged stamp duty when they are contributed, transferred, or withdrawn.
Lastly, carried interest earned by qualifying persona and employees
(in respect of qualifying investment management services provided to the LPF)
Will be subject to certain conditions being met, taxed at 0%.