Hong Kong single family offices and the profits-tax concession
A company set up to hold and administer one family’s own capital can be assessed against the qualifying family-office profits-tax concession. The concession has substance tests on assets, people and expenditure. Incorporation does not create the exemption.
One family versus several clients
A single family office serves one family’s own capital. Managing investments for unrelated clients may be a regulated activity under the SFO and requires the relevant licence. Wan Muk holds a TCSP licence and handles formation, secretarial work and the concession tests; investment management sits with licensed firms.
Usual thresholds
Published materials typically refer to at least HK$240 million of assets under management, at least two qualified employees, at least HK$2 million of operating expenditure, and specified classes of profit. Check the IRO and IRD text then in force.
Separate from fund exemptions
The unified fund exemption (including IRO s.79) and other fund or family-office profit classes have their own tests. They are not one concession.
Case-specific decisions differ — book a consultation with our advisers.
The content of this page is general professional information and does not constitute tax, legal or investment advice. For specific cases, please consult a Hong Kong practising accountant or tax adviser, or refer to official publications of the IRD / SFC / HKMA / CR.