Taxation of Virtual Assets

The absence of capital gains tax on digital asset transactions and the treatment of frequent trading as income, subject to a 16.5% profits tax, makes Hong Kong's unique tax landscape a favourable environment for cryptocurrency traders and investors.

This comprehensive guide explores the implications of these policies, emphasising the potential for tax-efficient wealth accumulation and investment strategies. It also outlines the regulatory landscape, including the categorisation of crypto assets and the compliance requirements for traders and investors, positioning Hong Kong as a leading hub for virtual assets.

Complete the form below to gain instant access to this Practice Note that appeared first in the Hong Kong Financial Services module of Lexis+ Practical Guidance Hong Kong.