Singapore VCC insights
Hong Kong Policy Address 2026 Family Office Measures Read Against Singapore
Short answer: Hong Kong’s 2026 Policy Address, delivered on 16 September 2026, added no new family office tax incentive. It promised promotion once the pending funds, family office and carried interest Bill passes, kept a target of helping 220 family offices from 2026 to 2028, and listed REIT, product and transparency work. Singapore’s comparable framework is already in force.
The Hong Kong Policy Address 2026 family office passages are short, and most of what they describe is either already before the Legislative Council (LegCo) or still at the planning stage. This note reads the official text paragraph by paragraph, separates what is law from what is a Bill or a plan, and sets each item against the Singapore rules a family office or fund manager deals with today. Every Hong Kong statement below is quoted from the Policy Address website, the Inland Revenue Department (IRD) or LegCo papers, and every Singapore statement from the Monetary Authority of Singapore (MAS). All sources were checked on 6 November 2026.
Key facts at a glance
- The Chief Executive delivered the 2026 Policy Address on 16 September 2026; the asset and wealth management passages are paragraphs 40 and 41 of Chapter III.
- Paragraph 40 promises “stepping up promotion following the passage of a bill on the enhancement of preferential tax regimes for funds, single-family offices and carried interest”.
- That Bill was gazetted on 12 June 2026 and read a first time on 24 June 2026; the IRD’s What’s New page, read on 6 November 2026, lists no passage announcement.
- If passed, the Bill applies to years of assessment beginning on or after 1 April 2025 and commences on gazettal as an Ordinance (LegCo paper LS35/2026).
- Annex indicator: “Assist no less than 220 family offices in setting up operations or expanding businesses in Hong Kong from 2026 to 2028.”
- Singapore: the MAS single family office licensing exemption took effect on 15 June 2026, with transition for existing offices to 15 June 2027.
- Singapore: MAS announced on 19 August 2026 a planned tax exemption for profit-related returns, expected from Year of Assessment 2027, with details due at Budget 2027.
This article is general information only and is not legal, tax or immigration advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.
What did the Hong Kong Policy Address 2026 family office passages actually say?
They said less than the headlines suggest. The family office reference is a single clause in paragraph 40, tied to a Bill already before LegCo, and the numerical commitment sits in the annex of indicators.
Paragraph 40 of Chapter III of the 2026 Policy Address opens with the Government’s own claim that “Hong Kong has become the world’s largest cross-boundary wealth management centre this year”. It then says the Government will continue to develop “a more attractive asset and wealth management ecosystem”, including “stepping up promotion following the passage of a bill on the enhancement of preferential tax regimes for funds, single-family offices and carried interest”. The stated goal is “to attract funds and family offices to establish a presence in Hong Kong and more global capital to be managed in the city”.
Three product items follow in paragraph 40: a bill this year to enable the privatisation or restructuring of real estate investment trusts (REITs), a bill in the first half of 2027 for a stamp duty waiver on transfers of non-residential property into REITs seeking to list, and a revision of Securities and Futures Commission (SFC) codes in the fourth quarter of 2026 “to promote innovation in fund products”. Paragraph 41 deals with channelling Mainland insurance money into Hong Kong exchange-traded funds and lifting the Mandatory Provident Fund (MPF) investment limit on index-tracking ETFs.
The annex carries forward, as an ongoing indicator from the 2025 Policy Address, the target to “assist no less than 220 family offices in setting up operations or expanding businesses in Hong Kong from 2026 to 2028”. It is an administrative target for the Financial Services and the Treasury Bureau (FSTB), not a legal measure. Our note on how Hong Kong and Singapore count family offices explains why headline numbers in either hub need care.
Which measures are law, which are Bills and which are only plans?
None of the wealth, family office or fund items in the Policy Address was law on 6 November 2026. Most are Bills or stated intentions, and the family office item depends entirely on a Bill that LegCo has not yet passed.
| Item in the 2026 Policy Address | Reference | Status at 6 November 2026 |
|---|---|---|
| Preferential tax regimes for funds, family-owned investment holding vehicles (FIHVs) and carried interest | Para 40 | Bill gazetted 12 June 2026; first reading 24 June 2026; FSTB said on 12 August 2026 that clause-by-clause examination was complete; no passage announcement found |
| Target of at least 220 family offices assisted, 2026 to 2028 | Annex, ongoing indicator | Administrative target, carried from 2025 |
| REIT privatisation and restructuring | Para 40(1) | Bill to be introduced within 2026 |
| Stamp duty waiver for property injected into REITs seeking to list | Para 40(1) | Bill planned for first half of 2027 |
| SFC code revisions for fund product innovation | Para 40(2) | Planned for fourth quarter of 2026 |
| Beneficial ownership transparency for companies and express trusts | Para 52; annex | Public consultation planned for fourth quarter of 2026 |
| 5% or half-rate profits tax for selected enterprises in sectors including finance | Para 211 | Amendment bill planned by year-end |
| Tax concessions for gold and commodity trading activities | Annex | LegCo to be consulted within 2027 |
Two of these matter to families more than their brevity suggests. The beneficial ownership consultation covers express trusts, which are a common holding layer for Greater China families, and the half-rate regime is described as for “selected enterprises”, not as a general rate. Neither has published terms yet.
What would the pending Bill change for family offices and funds?
It would widen what Hong Kong’s existing fund and FIHV concessions cover and loosen the carried interest regime. It would not, on the LegCo legal adviser’s summary, introduce a new family office regime.
The LegCo Legal Service Division report (LS35/2026) on the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026 summarises the main changes:
- Funds: the definition of “fund” would expand to include, for example, pension and endowment funds; a new section 20AMA would require at least two qualified employees and HK$2 million of operating expenditure in Hong Kong; and Schedule 16C would gain new asset classes such as loans and digital assets.
- Incidental transactions: the 5% threshold would be removed for funds and, through clause 26, for FIHVs, subject to an exclusion list for income from private companies tied to Hong Kong property trading or development.
- Family-owned special purpose entities: full profits tax exemption.
- Carried interest: the Hong Kong Monetary Authority certification requirement and the hurdle-rate reference would both be removed, and eligible sources of profit widened.
- Reporting: a new notification and seven-year record-keeping mechanism for specified funds.
The amendments would apply to years of assessment beginning on or after 1 April 2025. On 12 June 2026 the IRD also allowed eligible taxpayers to file 2025/26 returns on the Bill’s basis, provided they notify any revision needed once it is enacted. The FSTB said on 12 August 2026 that it targeted resuming the second reading debate “within the second half of this year”. Our line-by-line comparison of the FIHV and 13O tests covers the current FIHV conditions in detail.
How does Singapore’s framework compare item by item?
Singapore’s comparable rules are in force rather than pending. The trade-off is that Singapore’s family office incentives are approval-based, with more prescriptive conditions, while Hong Kong relies on statutory self-qualification.
| Issue | Hong Kong | Singapore |
|---|---|---|
| Family office licensing | Not addressed in the 2026 Policy Address | MAS licensing exemption in force from 15 June 2026; Singapore incorporation required; notification within 14 days of starting operations; existing offices have until 15 June 2027 |
| Family vehicle tax regime | FIHV concession in force: 0% on qualifying profits, HK$240 million of specified assets, two full-time employees and HK$2 million of local expenditure; enhancements pending in the Bill | Sections 13O and 13U of the Income Tax Act 1947: for single family office funds approved on or after 1 August 2026, S$20 million or S$50 million in designated investments and two or three qualifying investment professionals |
| Fund tax exemption scope | Wider asset list and removal of 5% cap proposed, not enacted | MAS FDD Circular 05/2026 removed the 5% cap on physical investment precious metals in the designated investments list |
| Carried interest | 2021 concession in force; wider regime proposed in the Bill | Exemption for profit-related returns announced 19 August 2026, expected from Year of Assessment 2027; not yet legislated |
| Scheme horizon | No end date in the IRD FIHV guidance | Schemes expire 31 December 2029 for new awards, with a Government review before then; existing awards continue for the life of the fund if conditions are met |
MAS’s 19 August 2026 media release limits the proposed Singapore exemption to profit-related returns from fund management services to funds under sections 13D, 13O, 13OA, 13U and 13V that are managed by Singapore-based fund managers. It states that the exemption “does not apply to ordinary salaries, bonuses or other forms of employee remuneration”. The same release announced a hedge fund investment programme and an Investment Management Track under the Overseas Networks and Expertise (ONE) Pass. Our comparison of Hong Kong and Singapore for fund managers covers the carry and talent detail.
What did the Policy Address not announce?
It did not announce any new family office tax incentive beyond the pending Bill, any change to the FIHV asset threshold, or any new investor residence measure in its wealth paragraphs.
The talent visa changes in paragraph 152 are aimed at groups including artificial intelligence professions on the Talent List, technology start-up founders under the Top Talent Pass Scheme and short-term trainees, not investors. The Policy Address text does not mention the HK$240 million FIHV threshold. Paragraph 180 on arts trading commits to a study within 2026 rather than to a tax measure. The measured reading is that it consolidates measures announced in 2025 and leaves the legal detail to the Bill.
On the Singapore side, the most recent family office changes, the licensing exemption of 15 June 2026 and Circular 05/2026 of 31 July 2026, predate the Policy Address, and the carried interest proposal of 19 August 2026 predates it by four weeks.
Does any of this change where a family should base its office?
Not by itself. The Policy Address changes no rule that a family office relies on today, and the Bill, once passed, would widen Hong Kong’s eligible assets without moving the substance and management tests.
Both hubs tie their concessions to where decisions are taken. Singapore’s 13O and 13U schemes require the fund to be managed throughout each basis period by a single family office in Singapore employing qualifying investment professionals who are Singapore tax residents. Hong Kong’s FIHV must be normally managed or controlled in Hong Kong by an eligible single family office. A wider Hong Kong asset list does not help a Singapore-managed vehicle, and a Singapore carry exemption would not help a Hong Kong team. Families that already run teams in both cities should read our guide to running one family office across both hubs, which deals with split decision rights, residence and reporting.
What should a Singapore-based family office do now?
Treat the Policy Address as a watch item, not an action item, and keep Singapore compliance on its own timetable.
- Confirm that the Singapore single family office meets the licensing exemption conditions and has filed, or will file, its notification with MAS before 15 June 2027 if it existed before 15 June 2026.
- Check any 13O or 13U fund against the conditions in its award letter and Circular 05/2026, including the investment professional count and year-end assets in designated investments; our sister site’s note on what happens when a 13O or 13U fund misses a condition sets out the consequences.
- If the family holds assets through a Hong Kong FIHV, track the Bill to passage and gazettal, and note that its effect would run from 2025/26.
- If staff receive carried interest or performance fees from a Singapore fund, await the Budget 2027 details before restructuring any arrangement.
- Watch the Hong Kong consultation on beneficial ownership of express trusts if a Hong Kong trust sits in the holding chain.
For the Singapore entities in the structure, the Raffles Corporate Services free tools page may help with routine company checks.
Frequently asked questions
Did the 2026 Policy Address create a new family office tax concession in Hong Kong?
No. It referred to promotion following passage of the Bill gazetted on 12 June 2026, which enhances the existing FIHV, fund and carried interest regimes. No separate family office concession was announced.
Has Hong Kong’s funds, family office and carried interest Bill been passed?
We found no record of passage as at 6 November 2026. The IRD’s What’s New page lists the June 2026 gazettal but no passage announcement, and the FSTB said in August 2026 that it aimed to resume the second reading debate in the second half of 2026.
What is the 220 family office target?
An indicator, first set in the 2025 Policy Address and carried into the 2026 annex, that the FSTB will assist at least 220 family offices to set up or expand in Hong Kong from 2026 to 2028. It is a promotion target, not a legal condition.
Is Singapore’s carried interest exemption law?
No. MAS and the Ministry of Finance announced it on 19 August 2026 as a plan expected to take effect from Year of Assessment 2027, with further details to be announced at Budget 2027.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email hello@rafflescorporateservices.com. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
Last reviewed: 6 November 2026. The Editorial Team, Variable Capital Companies Act.