Hong Kong Eyes Tax Waiver on Fund Managers' Performance Bonuses

Hong Kong is advancing plans to exempt fund managers' carried interest bonuses from tax, currently levied at up to 17%. The latest reports confirm draft legislation could reach the Legislative Council next month, potentially backdated to April 1, 2025, to attract talent from Singapore and Dubai. Consultations involving Deloitte have already taken place across Beijing, Shanghai and Hong Kong. The move would position the city as the first major Asian centre offering such breaks, boosting competitiveness for hedge funds and family offices. Market participants expect positive effects on Hong Kong's financial sector and the Hong Kong 50 index.