Key facts
- Hong Kong has gazetted a bill proposing a salary tax waiver on fund managers' performance-linked bonuses.
- The proposed tax break aims to enhance Hong Kong's status as a global wealth management hub.
- The bill is scheduled for its first reading by lawmakers on June 24.
- It would extend tax exemptions to private equity and venture capital funds on performance-linked income.
- The legislation plans to broaden tax exemptions to include a wider range of investment products and fund structures.
The Hong Kong government has introduced a bill aimed at bolstering the city's position as a leading wealth management center by offering tax incentives to fund managers. Gazetted on Friday, the proposed legislation, if passed, would waive salary tax on performance-linked bonuses for fund managers, provided they meet specific requirements.
The bill is scheduled for its first reading by lawmakers on June 24. Officials believe this measure will attract more fund managers and family offices to operate in Hong Kong, potentially drawing talent from abroad and reinforcing the city's status as a major global wealth management hub. Analysts suggest this move could make Hong Kong the first major Asian financial center to provide tax relief on performance-linked income for investment vehicles and their staff.