Hong Kong to attract more overseas private equity funding

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The Hong Kong Ordinance 2015 was published by the Inland Revenue which they released as a second amendment, seeking to improve tax exemption from overseas funds to Hong Kong based private equity funds.
With the amendment implemented, transactions conducted by private equity funds in respect of securities of eligible companies abroad will be able to benefit from more tax exemption on revenue.

It is hoped that by providing tax exemption and reduction to certain transactions conducted by overseas funds, it will encourage more expenditure in Hong kong, and attract fund managers to expand their company to Hong Kong and hire local financial, investment and advisory services, which will be advantageous to the expansion of the asset management industry in Hong kong.

Under the ordinance amendment, overseas private equity funds must conduct specific transactions through companies who are licensed by the Securities & Futures Commission, or fulfil strict regulations in order to qualify for revenue tax exemption.