Speaking at a media briefing on Tuesday, Sandy Fung, KPMG China’s partner of tax and alternative investments, said the bill would be passed “soon” by the Legislative Council (LegCo), the city’s lawmaking body.
“The bill could attract lots of funds and related talent to settle in Hong Kong, further cementing the city’s status as a global asset management centre,” Fung said.
The drafted law, titled the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026, was gazetted in mid-June and was moved to the second reading in the LegCo on June 24.
It would make Hong Kong the first global city to offer accurate and detailed rules for tax break on carried interests and performance-linked income to funds and their managers, which KPMG’s Fung described as “an unprecedented and revolutionary improvement”.