TAX REGULATIONS FOR HEDGE FUNDS & PRIVATE EQUITY
We are one of a few Hong Kong law firms who advise on Hong Kong tax laws and tax issues affecting both hedge funds and their managers, as well as private equity funds and their advisors.
Our work in this area complements our leading practices in private equity, hedge funds and investment funds. We are committed to maximizing your financial health and minimizing tax liabilities, strategically navigating anti-avoidance provisions, BEPS measures, and the administrative framework under the IRO.
Leveraging more than twenty years of experience serving clients in the financial sector, our firm has carved out a formidable standing as the preferred organisation for businesses in search of tailored and inventive legal guidance.
GETTING THE DEAL DONE
Hedge Fund Contact Us
Our legal team advises hedge fund managers on managing their own tax liabilities in Hong Kong as well as tax liabilities in Hong Kong of the funds that they manage. The latter includes eligibility for and the application of profits tax exemptions under the offshore funds and the unified funds tax exemption regime under the Inland Revenue Ordinance (“IRO”). We advise on corporate structures for management groups taking into account base erosion and profit shifting (“BEPS”) measures and the general anti-avoidance provisions (“GAAR”) of the IRO.
Private Equity Contact Us
We advise general partners (“GPs”) and private equity fund advisors on tax efficient structures for providing advisory and management services to the funds sponsored by them, including advising on corporate structure, and the treatment of carried interest and management fees. We assist with global structuring of sponsor groups, taking into account transfer pricing tax considerations under general anti-avoidance provisions (“GAAR”) and base erosion profit shifting (“BEPS”) provisions under the Inland Revenue Ordinance (“IRO”).
Structuring Contact Us
On the fund side, we advise private equity sponsors on the classification of income as capital gains and on the application of tax exemptions for profits tax in respect of the fund vehicle as well as holding vehicles. We advise private equity sponsors on the structure for investing to ensure the tax efficient distribution of gains and losses from investments to limited partners (“LPs”) including in respect of the form of investment into portfolio companies and the holding structure for such investments, taking into account tax exemptions and deductions as well as provisions of comprehensive double taxation agreements (“CDTA”).
Global Corporate Re-Organization of Financial Institution
Hong Kong counsel to a Fortune Global 200 financial institution advising on complex tax and securities and insurance regulatory issues in connection with a global re-organization in connection with US Government TARP funding.
Advised A Private Equity Purchaser on Pursuing Tax Indemnity Claims
Lead counsel to a private equity sponsored lifestyle rental accommodations provider with over US$1 billion of assets under management in connection with tax indemnity claims pursuant to a sale and purchase agreement for the acquisition of a building in Hong Kong.
HOW CAN WE HELP?
With deep expertise in handling tax issues, our legal team can provide tax planning advice in respect of the structuring of hedge funds or private equity funds and their management groups, as well as advice on structuring investments to minimize tax liabilities.
Contact us if you need assistance.