• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 11/22/2013

Hong Kong - Proposed tax changes for private equity, REITs 

November 22: The Financial Services Development Council (FSDC) in Hong Kong on 18 November 2013 issued six new research papers—two of which contain proposed changes to the taxation of private equity funds, and proposed changes to the Hong Kong real estate investment trust (REIT) market.

Although Hong Kong has had an exemption from tax for offshore funds for some years, the exemption has not applied to funds that invest in private companies. As announced in the last budget proposals, the Hong Kong government intends to extend the offshore funds exemption to apply for investments in private companies. In addition, the tax proposals are intended to make Hong Kong REITs more attractive for investments.

Read a November 2013 report [PDF 120 KB] prepared by the KPMG member firm in Hong Kong: Proposals to revise offshore fund and REIT rules – Hong Kong Financial Services Development Council recommendations

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