Hedge fund managers in Hong Kong are set to benefit from a change to the city’s tax laws that will effectively eliminate levies on performance-related income for some funds.
The Hong Kong government plans to present a bill to the city’s Legislative Council proposing tax exemptions for a wide range of alternative asset managers on so-called carried interest. That’s the share of investment profits paid to fund managers, often making up a huge chunk of their annual compensation.
The tax break on eligible carried interest will apply to hedge fund employees’ performance fees, which could help Hong Kong attract talent, ...