The Government in Hong Kong has released a consultation with regards to introducing tax concessions for carried interest distributed by private equity funds. If approved the relief will come into effect retrospectively from 1 April 2020.
The consultation is in response to concerns as to uncertainty surrounding carried interest and calls for exemption or at least clarity on the matter in light of the important contribution that the private equity industry provides to the financial sector in Hong Kong.
In light of the challenging times facing Hong Kong this relief is one of many in an attempt in stimulating the economy and providing financial stability.
