Positive Changes to Hong Kong’s Profits Tax Exemption for Offshore Funds

Most Hong Kong managers manage offshore funds that are formed and regulated (or exempt from regulation) in the Cayman Islands or other similar locations. For some time now the Government of the Hong Kong Special Administrative Region has grappled with how to create greater certainty for investors as to the tax neutrality of these structures in order to bolster the asset management industry in Hong Kong.

Overview: Economic Substance in Bermuda

Further to our client update of 21 December 2018 we have put together a brief overview of the new legislation now it has come into force.

The Companies (Amendment) (No. 2) Ordinance 2018

HONG KONG: The Companies (Amendment) (No. 2) Ordinance 2018 has been introduced to streamline the administration of Hong Kong companies and facilitate compliance and came into force on 1 February 2019.