Compliance

[Webinar] Overview of the Carried Interest Tax Concessions Regime in Hong Kong

Overview

With China’s easing of its COVID measures and the reopening, it is expected to see China’s economy return to normal with investment opportunities in China. Investors and fund managers begin to step up and gain from the transition. While fund managers are focusing on the vast of opportunities from China’s reopening, it is equally important to ensure the setup is tax efficient to the fund managers, including carried interest, which is more topical for talent attraction. Fund managers start to revisit their carried interest plans for the purpose of Hong Kong’s Carried Interest Tax Concessions Regime, especially for new fund launches.

The Carried Interest Tax Concessions Regime is effective since 2021 with a retrospective application from 1 April 2020. Upon meeting the relevant conditions, the carried interest received would be eligible for a 0% Hong Kong profits tax rate and correspondingly an exclusion for Hong Kong salaries tax of the relevant individuals.

In light of the regime, the Hong Kong Monetary Authority (HKMA) issued relevant guidelines on 31 August 2022, including the “Guideline on Auditor’s Report for Application for Certification of Funds – for Funds and their Investment Managers” and the “Guideline on Auditor’s Report for Application for Certification of Funds – for Certified Public Accountants (Practising)” (collectively, the “Guidelines on Auditor’s Report”), to assist funds in applying for carried interest tax concessions and to set out requirements in relation to the auditors report for assisting the HKMA in determining whether a fund has met the predesigned criteria for relevant tax concessions.

The regime and the relevant guidelines mark a significant milestone for the asset and wealth management industry in Hong Kong.

Objective

Upon completion of the course, the participants would get better understandings on the Carried Interest Tax Concessions Regime in Hong Kong, common challenges, the related application processes and documents required, and insights on the Guidelines on Auditor’s Report and the HKICPA Circular which provide the clarity to specify what key work steps the auditor should conduct the agreed-upon procedures, the suggested level of evidence to be obtained as the basis for the report of factual findings.

Content

Section 1 – Overview of the Carried Interest Tax Concessions Regime
Section 2 – Relevant requirements, application processes and documents required
Section 3 – Overview of the auditor’s report for certification of funds for carried interest tax concessions

Who should attend

Fund managers (particularly private equity and venture capital fund managers), fund accountants, professional practitioners

Speaker/Course Instructor

Ming LAM
Mr Ming Lam is a Partner with EY’s Financial Services Tax team who has more than 14-year practical tax experience specializing in financial services sectors (i.e. wealth and asset management, securities, banking and capital markets, insurance). He advises clients on all tax matters across investment fund and structure, transaction and due diligence, corporate and group structure, execution and reporting. He is a member of CPA Australia and Hong Kong Institute of Certified Public Accountants (HKICPA).
Gary MAK
Gary is an audit senior manager in EY Hong Kong's financial services, and focuses on the Wealth & Asset Management sector. He has more than 11 years of experience in auditing, accounting and advisory practices. Gary has solid industry experience in areas of audit and other assurance services, compliance, internal controls, corporate governance, funds set-up, ESG etc. He is a member of Hong Kong Institute of Certified Public Accountants (HKICPA).

Details

Code
TSBCO23001001
Date & Time
Thursday, 23 Feb 2023 (12:20PM - 1:20PM)
Venue
Virtual Platform
Relevant Subject
Type 9 - Asset management
Tags
New
Language
English
Hours
SFC:1.00, PWMA:1.00
Fees
All Member: HK$270
Staff of Corporate Member: HK$270
Non-Member: HK$540
Student Member (UHKSI): HK$135