The Hong Kong government has announced its 2024 budget plan. Initiatives for the financial sector include enhanced preferential tax regimes for family offices.
Hong Kong’s 2024-25 budget plan was released on Wednesday and it included initiatives dedicated to the financial sector. In terms of industry developments for finance, there are efforts to increase the attractiveness of the city for related funds, single family offices and carried interest.
This includes reviewing the scope of the tax concession regimes, increasing the types of qualifying transactions and enhancing flexibility in handling incidental transactions, according to the government’s budget speech.
CIES, Summit
In addition, the government highlighted the revamped Capital Investment Entrant Scheme (CIES) which will enable eligible individuals who invest HK$27 million ($3.4 million) or more in qualifying assets and place HK$3 million into a new ‘CIES Investment Portfolio’ to apply to reside in Hong Kong.
Authorities are also preparing for the second «Wealth for Good in Hong Kong Summit» at the end of March. The event aims to showcase the city’s advantages for global family offices and asset owners. The first summit of this sort was hosted in March 2023.
Promotional Budget
To further promote the sustainable development of financial services in Hong Kong, the government is earmarking HK$100 million ($12.8 million). Areas of focus include green and sustainable finance, fintech, asset and wealth management, headquarters business and risk management.
«The financial industry is one of the pillars of Hong Kong’s economy. Hong Kong as an international financial center is also our country’s international financial center, having an edge in ‘quantity’ and ‘quality’ that enables various financial areas to thrive,» said government added.
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