This legislative tracker follows up directly on the 2026 Policy Address: the Address committed to building a more attractive asset and wealth management ecosystem through optimising the concessionary tax regimes for funds, single family offices and carried interest, with implementing amendments entering the legislative process. This page is the tracker — the current tax baseline, a watchlist for the amendments and the legislative timetable. When the bill text is gazetted, this page will be updated into a clause-by-clause analysis within 48 hours.
The starting point: the 2026 Policy Address commitment
The Policy Address, delivered on 16 September 2026, committed to building a more attractive asset and wealth management ecosystem by optimising the concessionary tax regimes for funds, single family offices and carried interest. The same release published a Family Office Guide with a new target: 220 additional family offices settling in Hong Kong across 2026–2028. Tax optimisation is the core enabler of that target.
The current baseline: what exists today
Before tracking the amendments, anchor on the three regimes in force — optimisation builds on this baseline:
| Regime | Basis | Current content |
|---|---|---|
| Family office profits tax exemption | Schedule 16E, IRO (since 2023) | 0% profits tax on qualifying trades of FIHVs managed by eligible SFOs; safe harbour AUM ≥ HK$240m with 2 FTEs paid ≥ HK$2.8m |
| Carried interest concession | Schedule 16F, IRO (since 2021) | 0% profits tax on qualifying carried interest for eligible private companies providing management services |
| Unified funds exemption | Schedule 16C, IRO | Profits tax exemption on qualifying fund transactions |
Watchlist: five things to watch in the amendments
- Scope — whether eligible asset classes for carried interest and fund exemption expand (more alternatives).
- Thresholds — whether Schedule 16E AUM and employee tests are relaxed or made more flexible.
- Compliance simplification — whether substance and filing requirements ease in step.
- Mainland linkage — whether the drafting clarifies cross-border tax treatment alongside the 2026 mainland rules.
- Commencement and retroactivity — whether new provisions apply from a specific year of assessment.
The legislative timetable: the usual process
The usual Hong Kong process: the Chief Executive in Council approves the draft → gazettal → first and second readings in the Legislative Council → bills committee scrutiny → third reading → commencement on a appointed day. Optimisations promised in a Policy Address typically complete their legislative passage in the following months of the LegCo session. Specific dates follow the gazette and the LegCo timetable.
Industry response
Institutions including RFO Bankers have welcomed the direction of the tax optimisation, noting it will further strengthen Hong Kong’s position as an MFO hub. The industry’s common focus is the scope of the details — with talent, technology and family governance becoming the competitive triad, tax is only part of the package.
Key industry data
The 2026 Policy Address committed to optimising tax regimes for funds, single family offices and carried interest.
The government targets 220 additional family offices settling in Hong Kong across 2026–2028.
The current Schedule 16E safe harbour requires AUM of at least HK$240 million with 2 full-time employees paid HK$2.8 million in total.
Hong Kong hosted more than 3,380 single family offices by end-2025 (InvestHK / Deloitte).
Hong Kong books about US$2.5 trillion of cross-border wealth — the world’s largest hub (BCG, 2026).
FAQ
Could the existing 0% concession be cancelled?
The policy direction is optimisation, not retrenchment — the Address’s wording is about building a more attractive ecosystem. This page tracks developments continuously and any material change will be updated within 48 hours.
How do I know when the bill text is published?
The gazette and the LegCo timetable are the official channels; bookmarking this page gets you the Institute’s 48-hour analysis. Members also receive updates through the member bulletin.
Further reading
For the Address analysis, see the 2026 Policy Address measures; for the current 0% regime, see the family office tax concession; for mainland counterpart duties, see the practical filing guide; and see the FAQ.
References
- The Chief Executive’s 2026 Policy Address
- Inland Revenue Department (IRD)
- Hong Kong Legislative Council