Consideration of Tax Exemption for Institutional and Family Office Virtual Asset Income

The Hong Kong government is reportedly discussing tax exemptions for virtual asset (cryptocurrency) investment income from institutions and Family Offices. According to the Financial Times (FT) on the 28th (local time), the Hong Kong government recently announced a proposal stating that it is "discussing tax exemptions for virtual asset investment income from entities such as Samo Fund, Hedge Fund, and Family Offices." According to the proposal, virtual assets are included in the expansion plan of the existing financial investment income tax exemption, and the Hong Kong government is conducting consultations on the plan for six weeks. Regarding this, Patrick Ip, Deloitte's vice chairman, said, "Some Family Offices in Hong Kong are subject to about 20% of their virtual assets being taxed. This bill is an important step to elevate Hong Kong's position as a financial and virtual asset trading hub."