The Hong Kong government is committed to enhancing Hong Kong's competitiveness as an international financial center. According to sources, the government is considering making performance bonuses for fund managers tax-free in order to attract investment talent. Reports indicate that this reform will make Hong Kong the first major financial center in Asia to implement tax incentives for carried interest, potentially attracting top wealth managers and star investors to settle in Hong Kong. Eric Lam, a partner in Deloitte's M&A tax services, stated that the industry has responded positively to this proposal, and companies are actively communicating with clients on how to make the best preparations. The changes being considered by Hong Kong will put it ahead of Singapore in terms of the certainty of performance fee taxation and bring it closer to Dubai, where individuals are not required to pay income tax. He added that Deloitte has been involved in discussions with the government on these proposals and recently held seminars with asset management companies in Beijing, Shanghai, and Hong Kong. Currently, Hong Kong levies up to 17% tax on performance bonuses tied to investment returns. Industry sources reveal that due to last year's market rally, several Asian fund managers received performance bonuses exceeding $1 million (approximately HK$7.8 million), with top performers receiving bonuses of over $50 million (approximately HK$390 million), making the tax incentives highly attractive. Hong Kong Financial Secretary Paul Chan earlier stated that the current government is committed to consolidating Hong Kong's competitive advantage as a leading asset and wealth management center. The government will submit legislative proposals to the Legislative Council in June to optimize the tax regime for funds, single family offices, and carried interest, further enhancing the competitiveness of the tax system to attract more funds and family offices to establish and operate in Hong Kong.