Deloitte Seminar - Hong Kong Funds Industry
In the 2013/14 Budget, the Financial Secretary proposed to include private equity funds within the scope of the existing Hong Kong profits tax exemption for offshore funds.  In response, the Financial Services Development Council (“FSDC”) issued a synopsis paper on 18 November 2013 setting out the FSDC's recommendations for the proposed extension of the profits tax exemption.  The synopsis paper provides insight to the industry as to the issues the new law may address.  The Government has now completed an industry-wide consultation and will move forward the legislative process as soon as possible.

The proposed extension of the profits tax extension is an encouraging sign to the Hong Kong asset management industry.  However, at the same time, the Field Audit and Investigation Unit of the Inland Revenue Department (“IRD”) is pursuing an initiative to investigate offshore fund structures.  This initiative may cast a shadow over the development of Hong Kong as a premier regional and international asset management centre.

The seminar covers the following topics:

Key recommendations of the FSDC in their synopsis paper

Our comments and suggestions on the FSDC's recommendations

An update on the IRD's key areas of challenges in recent field audit cases