Hong Kong Weighs Tax Incentives for Proprietary Trading Firms Like Jane Street, Citadel Securities

Hong Kong is considering amending proposed legislation to bring proprietary trading firms, including Jane Street and Citadel Securities, within the scope of the tax reform. The move would make performance-related pay for employees of such firms exempt from tax.

In response to the tax reform, the Financial Services and the Treasury Bureau said the proposed enhanced tax incentives for funds and carried interest are not limited to specific types of funds or asset managers. Eligibility depends on meeting the relevant conditions and requirements. If necessary, administrative guidance may be issued at an appropriate time to clarify the implementation of the incentives, the interpretation of key concepts, and operational requirements.