On 16 October 2024, the HKSAR Government unveiled the highly anticipated 2024 Policy Address themed around continuous development and renewal. Accordingly, the Policy Address is titled “Reform for Enhancing Development and Building Our Future Together”.
A broad array of initiatives are presented in the Policy Address to solidify Hong Kong’s status as a leading international financial and innovation centre. New growth areas will be explored and tapped into in order to facilitate comprehensive economic and social development.
Some of the key measures proposed in the Policy Address are as follows:
Enhancing concessionary tax regimes
A consultation is scheduled to be held towards the end of 2024, where the eligibility criteria for tax concessions applicable to funds and single-family offices will be eased, widening the scope of qualifying transactions.
In addition, plans are underway to spruce up the preferential tax regime for the maritime services sector, which will introduce additional tax benefits for ship lessors that align with global tax standards.
Further, tax benefits aimed at the commodity trading industries, such as those involving the purchase and sale of metals and minerals, will be introduced.
Refining the New Capital Investment Entrant Scheme
Under the original scheme, only non-residential real estate counted towards the HKD 30 million investment requirement. Under the revised scheme, investors can include high-end residential properties, provided the transaction price is at least HKD 50 million.
Establishing a HKD 10 billion Innovation and Technology Industry-Oriented Fund
A fund-of-funds will be set up to mobilise market capital for investment in strategically important industries, including AI and robotics, advanced materials, life and health technology, new energy, and semiconductors and smart devices.
Attracting more international talents
Hong Kong’s talent admission regime will undergo a revamp to reel in skilled professionals, including revising the Talent List to dovetail with the city’s strategic needs, extending the initial visa validity period for high-income individuals under the Top Talent Pass Scheme, and rolling out a new mechanism as part of the Quality Migrant Admission Scheme to support the active recruitment of top-notch talents.
