The Hong Kong Government passed the Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Bill 2021, which provides tax concessions for eligible private equity funds operating in Hong Kong that distribute carried interest with a 0% profits tax on qualified carried interest. The implementation of the Bill is expected to attract more private equity funds to register and operate in Hong Kong, creating business and job opportunities for various professional services in the city. Meanwhile, the Hong Kong Monetary Authority also issued guidelines for the relevant audit reports. When applying for verification, funds must submit audit reports and other documents to the Monetary Authority to help determine whether the fund has invested in any private company.
As one of the important stakeholders in the measures, the accounting industry aims to provide more information about the legislation to its professionals. CWK Global’s Managing Partner, Mr. Ocean Chan, and Tax and Advisory Principal Partner, Ms. Evy Wong, attended a seminar organized by the Association of Women Accountants to share the differences between the Unified Fund Exemption Scheme and the tax concession scheme, and the requirements of audit reports. This allows participants to gain a deeper understanding of the tax concession details.