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Hong Kong Financial Secretary: Digital assets will be classified as eligible investments for tax relief
Svmuu News: Hong Kong Financial Secretary Paul Chan stated in his Budget Speech that, to further attract family offices and funds to establish a presence in Hong Kong, the tax system will be optimized, classifying digital assets and precious metals as eligible investments for tax relief, with the changes set to take effect starting in the 2025/2026 tax year. In addition, over the next two years, Hong Kong will implement the Organization for Economic Cooperation and Development (OECD) framework for the reporting of crypto-assets and the newly revised Common Reporting Standard, in line with international efforts to enhance tax transparency and combat cross-border tax evasion. A draft amendment to the Inland Revenue Ordinance is expected to be submitted in the first half of the year. Paul Chan also stated that the Hong Kong government will continue to issue tokenized bonds on a regular basis. Within the year, Xunqing Settlement will establish a digital asset platform to support the issuance and settlement of digital bonds, gradually expanding to other digital assets and connecting with other tokenization platforms in the region. (Hong Kong Government News Release)
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