We are one of a few Hong Kong law firms who advise on Hong Kong tax laws with a particular focus on taxation of private funds. Our Tax practice complements our practices in
Hedge Funds, Private Equity and Mutual Funds, for which we have been internationally recognized as leading practices by the International Financial Law Review 1000 (IFLR1000), the Legal 500, Chambers and Partners and Asialaw Profiles.
Hedge fund managers, private equity sponsors, wealth managers and independent financial advisers routinely trust us to advise on the Hong Kong tax regime and tax planning opportunities to manage tax liabilities.
As a law firm, our tax advice is protected from disclosure by legal professional privilege, meaning that our clients can be assured that neither the Inland Revenue Department (“IRD”) nor any other authority can compel the disclosure of their communications with us and our advice to them. This means that our clients can rest assured that any information they disclose to us, no matter how sensitive, will remain confidential and unavailable to the IRD or other authorities who may wish to understand the motivations and considerations giving rise to particular structures, activities and arrangements.
Our work includes advising on the following:
General tax planning, including Hong Kong tax treatment for individuals, corporations and private funds, potential liabilities for Hong Kong profits tax, salaries tax and property tax under the Inland Revenue Ordinance (“IRO”), the availability of deductions and exemptive relief, and tax planning opportunities to minimize tax liabilities in Hong Kong, taking into account anti-avoidance provisions under the IRO and the common law, base erosion and profit shifting (“BEPS”) measures as well as the administrative framework under the IRO)
Taxation of hedge funds and taxation of private equity, including managing Hong Kong tax liabilities arising from management fees, performance fees, carried interest or income from underlying portfolio investments, and applicable tax exemptions, including profits tax exemptions for offshore funds and private funds
We have actively engaged in communications with the IRD and have had discussions with the IRD for the purpose of shaping the scope of the Hong Kong profits tax exemptive relief for private funds and in respect of the IRD’s practices relating to the administration of available exemptions under the IRO.