Tax Breakfast: Let’s talk about tax in Hong Kong 2024/25

Nearly six months have passed since Financial Secretary Paul Chan Mo-po presented the 2024/25 Hong Kong Budget, which was designed to reinforce the city's recovery and stimulate economic growth. Aligned with the Budget's goals, a range of tax measures have been introduced. Our upcoming tax breakfast will offer a mid-year review of these measures, examining the tax developments in 2024/25 to date.

Although there are numerous measures to consider, our seminar will focus on the following topics:

• Proposed Company Re-domiciliation Regime & New BVI Annual Returns Filing Requirement – The policy intent of the proposed company re-domiciliation regime is to provide a straightforward and simple route for non-Hong Kong companies to transfer their domicile to Hong Kong. This new proposed regime has become even more relevant in light of the new requirements where all BVI registered companies must now prepare an annual return, which may spur more business to opt for re-domiciliation in Hong Kong.

• Proposed Hong Kong Patent Box Tax Incentive – The incentive aims to reduce the tax rate for Hong Kong sourced profits derived from the use or sale of qualifying IP to 5%;

• Single Family Office Tax Concession – Under the proposed regime, eligible Family-owned Investment Holding Vehicles ("FIHVs") and their Family-owned Special Purpose Entities ('FSPEs') managed by eligible Single Family Offices ("SFOs") in Hong Kong will be exempt from Hong Kong profits tax on investment profits, upon meeting certain conditions; and

• Refined Foreign Sourced Income Exemption ("FSIE") Regime and Enhancement Scheme – Refinements to Hong Kong's FSIE regime for four types of offshore income, namely (1) interest, (2) dividends, (3) disposal gains from the sale of equity interests, and (4) income from intellectual property ("IP") together with a tax certainty enhancement scheme for onshore equity disposal gains.

A light breakfast and refreshments will be provided.