carried interest tax concession
The Hong Kong Government introduced the Inland Revenue Amendment Tax Concessions for Carried Interest Bill 2021 the Bill on 28 January 2021. Hong Kong enacted the Inland Revenue Amendment Tax Concessions for Carried Interest Bill 2021 the New Law on 7 May 20211 The New Law provides a tax regime offering tax.
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On 7 May 2021 the Inland Revenue Amendment Tax Concessions for Carried Interest Ordinance 2021 the Amendment Ordinance was enacted into law.
. A private equity fund typically uses carried interest to pass through a share of its net capital. Received a preferred return at an annual rate of 6 compound interest that would also be considered carried interest. For tax concessions under the tax concession regime for carried interest.
Following its proposal to introduce a concessionary tax rate for carried interest earned from Hong Kong private equity funds on January 4 2021 the Hong Kong Government announced that eligible carried interest will be charged at a profits tax rate of 0 and that 100 of eligible carried interest will be excluded. On 29 January 2021 the Inland Revenue Amendment Tax Concessions for Carried Interest Bill 2021 the Bill was gazetted to amend the Inland Revenue Ordinance and introduce a. The concessional tax treatment for carried interest is now effective from.
The tax concession involves a number of conditions that must be satisfied for a carried interest to qualify for the concession. That is where an entity that is recipient of the carried interest return pays part of the return to. The preferential tax rate is especially important for a private equity fund and its managers.
Given tax treatment is one of the key factors influencing the choice of jurisdiction for fund. January 11 2021. Taxpayers who would like to enjoy 0 Carried Interest Tax.
The Bill aims to amend. The Government has spared no efforts in developing Hong Kong as a premier PE fund hub. As part of a longstanding Government policy to attract private equity PE and investment fund operations to Hong Kong the Inland Revenue Amendment Tax Concessions.
In line with our policy objective to promote the development. The Government published the Inland Revenue Amendment Tax Concessions for Carried Interest Bill 2021 the Bill in the Gazette today January 29. After years of lobbying with the government of the Hong Kong Special Administration Region Hong Kong SAR government and the Hong Kong Inland Revenue.
Asset Management Tax Update of 29 January 2021 provided an overview of the Carried Interest Tax Concession Bill. For qualifying carried interest recipients subject to profits tax ie the fund management entities under Part V of the Securities and Futures Ordinance carried interest. The tax concession for a carried interest also looks through to the employees.
The tax concession regime for carried interest distributed by eligible private equity funds operating in Hong Kong alongside the enhancements to the profits tax exemption that. Tax concession rate The Proposal provides that eligible carried interest would be charged at a 0 profits tax rate such rate was kept silent under the Consultation Paper. Qualifying Transactions of Certified Investment Funds 10.
Fund Managers pursuing Tax-free Carried Interest Concession should now fill in Supplementary Form S15 of Profits Tax Return. These include being a qualified recipient the. The proposal states that the tax concession only applies to carried.
The Inland Revenue Amendment Tax Concessions for Carried Interest Ordinance 2021 Ordinance was enacted into law on 7 May 2021 by way of amendment to. The legislative council brief accompanying the Bill specifies that carried interest derived from a hedging transaction may only be eligible for the Tax Concession if the hedging. The Inland Revenue Amendment Tax Concessions for Carried Interest Ordinance 2021 Ordinance was enacted into law on 7 May 2021 by way of amendment to.
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