Hong Kong Financial Secretary: Digital assets will be classified as eligible investments for tax relief.

In his budget address, Hong Kong Financial Secretary Paul Chan Mo-po stated that to further attract family offices and funds to Hong Kong, the tax system will be optimized. Digital assets and precious metals will be listed as eligible investments eligible for tax relief, and this is planned to take effect from the 2025/2026 tax year. Furthermore, the OECD's crypto-asset reporting framework and a newly revised Common Reporting Standard will be implemented in the next two years to align with international efforts to enhance tax transparency and combat cross-border tax evasion. The draft amendment to the Inland Revenue Ordinance is expected to be submitted in the first half of the year. Chan also stated that the Hong Kong government will continue to issue tokenized bonds regularly. Clearing.com will establish a digital asset platform this year to support the issuance and settlement of digital bonds, and will gradually expand to other digital assets, as well as connect with other tokenized platforms in the region. (Hong Kong Government Press Release)