Why is tax planning essential for OFCs?
As you may know the objective for fund managers is to maximise an investors' ROI. However, without proper tax planning, this return could be significantly reduced and potentially impact the entitlement to carry.
An efficient structure would therefore try to minimise profits lost to tax at all levels all the way from the main fund vehicle to the portfolio entity that holds the investment.
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Enhanced Tax Advantages
Did You Know series – OFCs - Enhanced Tax Advantages – Part 3
Enhanced Tax Advantages
OFCs in Hong Kong benefit from a favourable tax regime as they are exempt from profits tax on income derived from qualifying transactions, such as those involving listed securities, bonds, and funds.
This exemption enhances the tax efficiency of an OFC and makes Hong Kong an attractive location for fund managers and investors.