Tax exemptions planned to lure in family businesses
Hong Kong is to offer tax exemptions and a new capital investment entrant scheme as part of efforts to attract family businesses and asset holders to the city. A policy statement from the Financial Services and the Treasury Bureau on Friday said that under a tax concession proposal, family-owned investment holding vehicles would enjoy tax exemptions for qualified transactions, including in securities, futures contracts, foreign exchange, deposits, exchange-traded commodities, OTC derivative products and investment in private companies.  The arrangements will be applicable to any financial year after Legco passes the plans.  Under the new investor entrant scheme, people can apply to live in Hong Kong with their spouse and unmarried children, as long as their qualified investment assets pass a certain threshold.  These assets can include equities listed in Hong Kong, debts issued or fully guaranteed by companies listed in Hong Kong, by the government, or by other institutions partly owned by the government, as well as subordinated debts issued by authorised institutions and eligible collective investments. They can be dominated in Hong Kong dollars or renminbi. Other initiatives include the establishment of a new Hong Kong Academy for Wealth Legacy to nurture talent in wealth management.  The government also said it will promote art storage facilities as a way to boost the art markets, facilitate philanthropists to manage their wealth and to “channel their resources to the most effective and impactful social initiatives”, and expand the role of the FamilyOfficeHK team in InvestHK to offer customised services for family businesses.  Chief Executive John Lee said in his latest policy address that he hopes to attract no fewer than 200 family offices to establish or expand their operations in Hong Kong by the end of 2025.