Hong Kong budget includes tax benefits for corporate treasury centers and private equity funds

Tax measures in the Hong Kong government’s 2015-16 budget, released February 25, include tax reductions for corporate treasury centers and an extension of the profits tax exemption for offshore funds to private equity funds.

“On profits tax, the Financial Secretary proposed to amend the Inland Revenue Ordinance to allow, under specified conditions, interest deductions under profits tax for corporate treasury centres and reducing profits tax for specified treasury activities by 50 per cent.

Furthermore, the Government plans to table a bill in the Legislative Council later to allow private equity funds to enjoy profits tax exemption available to offshore funds,” an Inland Revenue Department release said.

The goverment also proposes a one-time reduction in income, salaries tax, and profits tax and proposes to increase child allowances.

See:

• Release

• Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2014/15

• Increasing child allowances

• Providing tax concessions to corporate treasury centres

• Profits tax exemption for private equity funds

• Budget 2015-16 FAQ

• Illustrative examples