The Inland Revenue (Amendment) Bill 2015 which seeks to extend the profits tax exemption for offshore funds to private equity funds, was gazetted today.
Secretary for Financial Services & the Treasury Prof KC Chan noted that the bill will help attract more private equity fund managers to set up or expand their business in Hong Kong and hire local asset management, investment and advisory services, which will be conducive to the further development of our asset management industry.
"This will in turn drive demand for other relevant professional services, such as business consulting, tax, accounting and legal services," Prof Chan added.
The city's private equity industry is growing, with the total capital managed by Hong Kong's private equity funds reaching US$114.6 billion last year, accounting for a 16% year-on-year increase and 21% of Asia's total capital managed by private equity.
The bill will be tabled at the Legislative Council on March 25.
