TechFlow News, February 25: According to a press release from the Hong Kong Government, Financial Secretary Paul Chan announced in his Budget Speech that Hong Kong will optimize its tax regime to further attract family offices and funds. Digital assets and precious metals will be added to the list of eligible investments qualifying for tax concessions, effective from the 2025/2026 tax year. Additionally, Hong Kong will implement, over the next two years, the Organisation for Economic Co-operation and Development (OECD)’s Crypto-Asset Reporting Framework and the newly revised Common Reporting Standard, aligning with international efforts to enhance tax transparency and combat cross-border tax evasion. The draft amendment to the Inland Revenue Ordinance is expected to be submitted in the first half of the year.
Chan also stated that the Hong Kong government will continue issuing tokenized bonds on a regular basis. The Hong Kong Monetary Authority’s Clearing and Settlement Systems will establish a digital asset platform this year to support the issuance and settlement of digital bonds, gradually expanding its scope to cover other digital assets and connecting with other tokenized platforms across the region.
