Gov’t passes family office tax relief measure

The tax concession for FIHVs will be applicable for assessment commencing on or after 1 April.

The government has passed a bill which provides tax concessions for eligible family-owned investment holding vehicles (FIHVs) managed by single-family offices (SFOs) in Hong Kong.

The bill will come into effect on 19 May. The tax concession for FIHVs will apply to any year of assessment commencing on or after 1 April.

The bill exempts FIHV’s assessable profits earned from qualifying transactions and incidental transactions from profits tax.

“To attain the policy objective of bringing investment management and related activities to Hong Kong, the FIHV shall be managed by an eligible SFO and fulfil the minimum asset threshold of $240 million and substantial activities requirement.” the government said.

Secretary for Financial Services & the Treasury Christopher Hui expects the bill to create new business opportunities for the asset and wealth management sector, and generate demand for other related professional services.

“This would foster Hong Kong's position as a premier family office hub and an international asset and wealth management centre,” Hui said.