Investor Presentaiton
Recommendations
Review Hong Kong's tax policy and incentives and take into account the innovative
practices in other jurisdictions
a)
4
Revise the definition of "business undertaking for general commercial or industrial business purposes" in Section 20 AM of
the Inland Revenue Ordinance and allow an infrastructure fund to engage directly in the construction or acquisition of
infrastructure projects / assets, to the extent they satisfy the definition of “infrastructure”.
b)
Expand the scope of "qualifying assets" under the UFE exemption rules to cover private debts financing.
c)
d)
e)
f)
Exclude interest income from the scope of "incidental income" under the UFE regime and treat such interest income as
income from qualifying assets.
Extend the Carried Interest Tax Concession Regime to cover carried interest arising from such "qualifying assets", should the
scope of "qualifying assets" be expanded to cover private debts financing.
Expand the scope of assets and expenditures eligible to accelerated tax deduction to include expenditures incurred within
the scope of sustainable infrastructure as prescribed in the FAST-Infra Sustainable Label.
As for governments of jurisdictions that are in need of green infrastructure funding, especially from foreign capital, we
suggest them to review their current tax policies and incentives to minimise the investment level taxes and withholding tax.
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