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Enoch Yiu

The Hong Kong government gazetted a bill on Friday that, if passed, would waive salary tax on fund managers’ performance-linked bonuses, so long as they meet certain requirements, in a move to introduce further tax reform to strengthen the city as a wealth management centre.
The bill, which will be first read by lawmakers on June 24, may attract more fund managers and family offices to operate in the city, the government said.
The measure would make Hong Kong the first major Asian financial centre to grant tax relief on performance-linked income to investment vehicles and their staff, and may attract more talent from abroad, reinforcing the city’s role as the world’s largest offshore wealth management centre, according to analysts.
The drafted law, titled the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026, would also exempt private equity fund companies and venture capital funds from paying tax on performance-linked income.
The bill would also broaden tax exemptions to cover more products that family offices and funds invest in, including private credit, carbon credits, insurance-linked securities, certain digital assets, gold and other commodities. At present, only traditional investment products such as stocks and bonds qualify.

It would also expand the types of funds eligible for the exemption. Currently open-ended funds are exempt, and the bill would add to charity funds, pension funds, and so-called fund-of-one structures set up by global organisations, such as the Asian Infrastructure Investment Bank.
This initiative is expected to attract large asset owners to set up and manage funds in the city.
“The relevant amendments under the bill will attract more funds and family offices to set up and operate in Hong Kong, and in turn create new opportunities for Hong Kong’s wealth and asset management industry,” said a spokesman for the Financial Services and the Treasury Bureau (FSTB).
“In particular, this would help further attract private credit investment activities in the region, while complementing Hong Kong’s development in areas such as digital assets and trading of precious metals and commodities.”
Robert Lee Wai-wang, a lawmaker for the financial services sector and chairman of Grand Finance Group, welcomed the proposed law change.
“The new tax incentives will encourage more fund companies and wealthy families to set up in Hong Kong. It will also encourage the family offices to invest in different products such as digital assets, gold and commodities,” Lee said.

Lee played down concerns that the tax exemption would lead to a loss of tax revenue for the city.
“It should be noted that some of these fund houses and family offices were not operating in the city before we offered them the tax exemption,” he said. “As such, we do not have any tax income from them anyway.
“After we would offer the tax incentives to attract these companies to come here, they would set up offices and hire staff and professionals for their operations. It would create jobs and benefit the real economy as a result.”
The tax reform comes as Hong Kong gains the title of the world’s largest offshore wealth management centre. The city overtook Switzerland as the world’s largest cross-border wealth hub, holding US$2.95 trillion last year, compared with Switzerland’s US$2.94 trillion, according to a Boston Consulting Group report last month.
Beijing’s 15th five-year plan also supports Hong Kong in continuing to strengthen its functions as an international asset and wealth management centre, the FSTB spokesman said.
“The government has long been committed to reinforcing our leading position in this area through providing a competitive tax environment,” he said.


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Wealth management

Hong Kong gazettes tax break for fund managers’ bonuses to bolster role as wealth hub

The skyline seen from the Hong Kong Museum of Art. Photo: Elson Li

Robert Lee Wai-wang at his offices in Central. Photo: Jonathan Wong

Victoria Harbour and Hong Kong’s skyline seen from the peak. Photo: Karma Lo

Hong Kong’s proposed bonus tax break for fund talent set to sharpen edge over Singapore

The measure is poised to make Hong Kong the first major Asian financial centre to grant tax relief on such bonuses. Photo: Eugene Lee

The move will help Hong Kong retain its recently claimed title as the world’s top offshore wealth management centre, according to industry experts. Photo: Jonathan Wong

The Financial Services and the Treasury Bureau, led by Christopher Hui, is expected to submit the proposed changes to the Legislative Council by the end of this month. Photo: Dickson Lee

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Illustration; Victor Sanjinez

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HSBC now has five wealth-management centres in Hong Kong, including this one that opened in September in the International Commerce Centre in West Kowloon. Photo: Handout

Standard Chartered next month will open its seventh wealth centre in Hong Kong at One Causeway Bay, the new office building on the site of the former Excelsior Hotel. Photo: Dickson Lee

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The tax reform bill, which the government expects will attract talent to the city, is set to be read by lawmakers on June 24


The tax reform bill, which the government expects will attract talent to the city, is set to be read by lawmakers on June 24.


Hong Kong gazettes tax break for fund managers’ bonuses to bolster role as wealth hub

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The tax reform bill, which the government expects will attract talent to the city, is set to be read by lawmakers on June 24

The tax reform bill, which the government expects will attract talent to the city, is set to be read by lawmakers on June 24