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Hong Kong: Draft legislation to enhance family office tax regime

Proposed to be retroactive to YOA 2025/2026

june 12, 2026

The Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026, which was gazetted on June 12, 2026, would enhance various tax concessions for family-owned investment holding vehicles (FIHVs) in Hong Kong, retroactive from the year of assessment (YOA) 2025/2026. The proposed changes include:

  • Expanded scope of qualifying investments
  •  Removal of the 5% threshold for incidental transactions
  • Clarification that value of assets under management for purposes of minimum asset threshold not reduced by loans from holders of direct beneficial interest of FIHVs and family-owned special purpose entities (FSPEs)

The Inland Revenue Department (IRD) has announced a transitional administrative measure to facilitate taxpayers who are eligible for the tax concessions proposed under the draft legislation to file their 2025/2026 tax returns on that basis.

Read a June 2026 report prepared by the KPMG member firm in Hong Kong

The draft legislation also includes enhancements to tax concessions for funds and carried interest, which will be addressed in a separate report.

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