Structuring considerations for family-owned investment holding vehicles
April 2023
As part of the plan to cement Hong Kong SAR’s position as the world’s leading asset and wealth management centre, the government has proposed a dedicated tax concession regime for family-owned investment holding vehicles (‘FIHVs’) to exempt FIHVs managed by eligible single family offices from profits tax under the Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Bill 2022.
In this second of a series of three articles, we consider how family offices can structure their FIHVs to take full advantage of the Concession Regime, in particular, we will explore the benefits and considerations of leveraging established fund models such as open-ended hedge funds, closed-ended private equity and venture capital funds for family offices. We will also highlight how these time-tested structures can provide stability, diversification and risk management, while optimising returns for the family office managers.
This publication was jointly published by PwC Hong Kong and Tiang & Partners.
Tiang & Partners is an independent Hong Kong law firm that closely collaborates with the global PwC network.
