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