Hong Kong Introduces Zero Percent Tax on Fund Manager Carried Interest, Targeting Singapore Firms

Hong Kong announced a new tax policy for fund managers. The policy sets a zero percent tax on carried interest earnings. Officials say the measure is designed to attract Singapore-based fund managers. The tax incentive aims to position Hong Kong as a competitive financial hub. The change could shift investment flows from Singapore to Hong Kong. The policy targets the lucrative carried‑interest component of fund profits. Regulators expect the zero‑tax regime to boost asset management activity. Market participants will monitor the impact on regional fund migration.