Hong Kong Financial Secretary: Digital Assets to be Classified as Eligible Investments for Tax Concessions

Odaily News Hong Kong Financial Secretary Paul Chan Mo-po stated in his Budget Speech that to further attract family offices and funds to establish themselves in Hong Kong, the tax system will be optimized. Digital assets, precious metals, and others will be classified as eligible investments for tax concessions, with the plan taking effect from the 2025/2026 tax year. Additionally, the OECD's Crypto-Asset Reporting Framework (CARF) and the revised Common Reporting Standard (CRS) will be implemented over the next two years respectively, aligning with international efforts to enhance tax transparency and combat cross-border tax evasion. The amendments to the Inland Revenue Ordinance are expected to be submitted in the first half of the year.

Chan also mentioned that the Hong Kong government will continue to issue tokenized bonds regularly. The Faster Payment System (FPS) will establish a digital asset platform within the year to support the issuance and settlement of digital bonds, gradually expanding to other digital assets and connecting with other tokenization platforms in the region. (Hong Kong Government Press Release)