Private Equity Tax Express - Issue 1, May 2013
The tax and regulatory framework for the Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone is rapidly being put in place. The framework policies are being designed to attract Hong Kong and international companies to establish operations in a special zone close to Shenzhen to promote the development of the financial and professional services, logistics, information technology and public service sectors.
As an element of this framework, a pilot scheme, broadly modeled on the Qualified Foreign Limited Partner (QFLP) scheme in Shanghai, is being put in place under the Qianhai Pilot QFLP Measures and Operating Rules, issued in November 2012 and March 2013, respectively, aiming to attract the establishment of private equity funds in Qianhai. Details and aspects of this regime are outlined in this Private Equity Tax Express Alert.