Hong Kong is reportedly eyeing new tax policies that can help in its push to become a top finance and cryptocurrency hub.
Citing a 20-page proposal that was circulated this week, The Financial Times reports that China’s special administrative region (SAR) plans to exempt private equity funds, hedge funds and the investment vehicles of the super-rich from paying taxes on crypto profits.
Hong Kong also wants to extend the tax exemption to other investments, including private credit, overseas property and carbon credit. The SAR is now conducting a six-week consultation on the proposals.
The development comes as Hong Kong and regional rival Singapore compete to be the top offshore finance destination. The proposal says Hong Kong wants to create a conducive environment for asset managers who consider taxation as a key deciding factor for choosing the base of their operation.
Deloitte China international tax partner Patrick Yip says the tax exemption proposal will give family offices and investors “certainty” if it pushes through. He says some family offices in Hong Kong allocate up to about 20% of their portfolio to digital assets, which he notes “is not insignificant.”
“This is an important step in boosting Hong Kong’s status as a financial and crypto trading hub.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/L.F
Credit: Source link
