In contrast, Singapore strengthened its tax policy on foreigners purchasing residential properties in April last year, raising the tax rate for foreigners purchasing any residential property in Singapore from 30% to 60%, and the tax rate for entities and trusts purchasing properties from 35% to 65%. This policy adjustment has significantly increased the cost for foreigners to purchase residential properties in Singapore.
Hong Kong has passed the Inland Revenue Amendment Tax Concessions for F iran phone number list entities “FPEs” managed by single family offices. Starting from the year of assessment beginning on April 1, 2022, profits derived by home control tools and family businesses from transactions in specified assets and transactions that are incidental to qualifying transactions will be exempt from profits tax. Singapore also provides tax incentives for family offices that invest in designated funds in Singapore, and certain investment income is not subject to the 17% corporate income tax. The tax incentives in both places are aimed at reducing the operating costs of family offices and increasing their attractiveness to attract more family offices to set up locally.
Overall, Hong Kong's tax environment provides a more attractive financial ecosystem for family offices. A clear tax structure, continuously introduced preferential tax policies and international tax cooperation together constitute the core competitiveness of Hong Kong's tax environment. These advantages not only reduce the tax burden of family offices, but also provide them with a stable and predictable financial environment.