Simple and Low Tax System

Hong Kong's tax rate is low, and the system is simple to understand. There is no sales tax or VAT , no investment withholding tax, no capital gains tax, no estate tax, no wine tax, and no tax on dividends or interest from savings. As of July 2020, Hong Kong holds 43 comprehensive double taxation agreements (“DTAs”), with another 14 under negotiation. This provides tax certainty to family offices by preventing double taxation. DTAs also enable family offices to enjoy favourable withholding tax rate for cross‐boundary trade and investment.

Tax concessionary and exemption schemes have been granted for different relevant market participants, including but not limited to hedge funds and PE funds; such measures have encouraged more of these players to establish presence locally, thereby expanding the investible and reachable universe for family offices.

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