Hong Kong to Optimize Tax System for Digital Assets and Precious Metals

Hong Kong's Financial Secretary, Paul Chan, announced plans to optimize the tax system to attract family offices and funds to the region. According to ChainCatcher, Chan stated in his budget speech that digital assets and precious metals will be eligible for tax reductions, with these changes set to take effect in the 2025/2026 tax year. In addition, over the next two years, Hong Kong will implement the Organization for Economic Cooperation and Development's (OECD) crypto asset reporting framework and the newly revised common reporting standards. These measures aim to enhance international 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 mentioned that the Hong Kong government will continue to issue tokenized bonds regularly. A digital asset platform will be established within the year to support the issuance and settlement of digital bonds, with plans to gradually expand to other digital assets and connect with other tokenized platforms in the region.