Hong Kong has gazetted a tax reform bill exempting private equity and venture capital funds from tax on performance-linked income. The bill is scheduled for lawmakers to read on June 24 and aims to attract talent to strengthen the city's role as a wealth hub.
The bill is titled the Inland Revenue (Amendment) Preferential Tax Regimes for Funds Family-owned Investment Holding Vehicles and Carried Interest Bill 2026. The government expects the measure to draw talent to the city.
It would also exempt private equity fund companies and venture capital funds from paying tax on performance-linked income. The Financial Services and the Treasury Bureau had previously consulted on the reforms.
The step comes as Hong Kong seeks to maintain its position as a wealth management centre in Asia. If passed the bill would apply to qualifying fund management activities.
