Chan Mo-po: Starting from the 2025/2026 tax year, digital assets will be classified as qualifying investments eligible for tax concessions

According to a press release from the Hong Kong government, the Financial Secretary Paul Chan stated in his budget speech that to further attract family offices and funds to settle in Hong Kong, the tax system will be optimized, with digital assets, precious metals, and others listed as eligible investments for tax relief, planned to take effect from the 2025/2026 tax year.

In addition, over the next two years, the implementation of the OECD's crypto asset reporting framework and the newly revised Common Reporting Standard will be carried out, in line with international efforts to enhance tax transparency and combat cross-border tax evasion, with a draft amendment to the Tax Ordinance expected to be submitted in the first half of the year. Chan also stated that the Hong Kong government will continue to regularly issue tokenized bonds, and a digital asset platform will be established within the year to support the issuance and settlement of digital bonds, gradually expanding to other digital assets and connecting with other tokenized platforms in the region.