Hong Kong Exempts Exchange Traded Funds from Taxes

Shares in exchange traded funds—types of investment vehicles—will be exempt from stamp duty as of Aug. 1, the Inland Revenue Department of Hong Kong said Monday.

The tax authority explained in a guidance note that the funds will be exempt from stamp duty on the purchase and sale of their shares.

• ETFs are listed investment vehicles that provide investors with exposure to an index of certain securities. The share price of the listed fund is designed to match the performance of the index.
• ETF providers, known as market makers, issue or redeem ETF shares as needed to maintain ...