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10.2. Financing Regimes

On 29 March 2018, the Hong Kong Inland Revenue Department published an Ordinance which provides a profits tax exemption to privately offered open-ended fund companies (OFCs). An OFC is a collective investment scheme with variable capital set up in the form of a company, but with the flexibility to create and cancel shares for investors' subscription and redemption in the funds, which is currently not enjoyed by conventional companies.

An OFC will be exempt from tax if its central management and control is exercised in Hong Kong.