In order to strengthen its position as a leading regional crypto hub, Hong Kong has put forward a proposal to waive cryptocurrency tax for wealthy individuals.
The proposal, which spans 20 pages, outlines the tax exemption for private equity funds, hedge funds, and the investment vehicles of affluent individuals on cryptocurrency, private credit investments, and other types of assets.
Furthermore, the tax exemption also covers private credit, overseas property, and carbon credits, and is currently open for a six-week consultation period.
The proposal states that taxation is a significant factor for asset managers when deciding their location, and Hong Kong aims to create a favorable environment for them. By providing this tax exemption, the city hopes to solidify its reputation as a top offshore finance hub, especially for companies in the crypto industry.
Vice chair and international tax partner at Deloitte China, Patrick Yip, believes that this initiative is a crucial step in strengthening Hong Kong’s position. He also mentions that this tax exemption will offer certainty to family officers and investors.
