Hong Kong Proposes Tax Deduction Regime for Acquisition of IP Rights
The Hong Kong government introduced a legislative bill ("Bill") on Mar 23, 2018, proposing to extend the current tax deduction regime for acquiring intellectual property rights (IPR) to cover three new types: 1. a performer's economic right; 2. a protected layout-design (topography) r...
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Published in | Journal of International Taxation Vol. 29; no. 7; p. 11 |
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Main Authors | , , , , , |
Format | Trade Publication Article |
Language | English |
Published |
Boston
Thomson Reuters (Tax & Accounting) Inc
01.07.2018
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Subjects | |
Online Access | Get full text |
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Summary: | The Hong Kong government introduced a legislative bill ("Bill") on Mar 23, 2018, proposing to extend the current tax deduction regime for acquiring intellectual property rights (IPR) to cover three new types: 1. a performer's economic right; 2. a protected layout-design (topography) right; and 3. a protected plant variety right. However, royalties that a nonresident receives for granting the use of, or the right to use, the three additional IPRs to a Hong Kong taxpayer will be deemed taxable in Hong Kong, and withholding from the payment will be required. The Bill explicitly deems that royalties that a nonresident receives for granting the use of, or right to use, the three new IPRs to a Hong Kong taxpayer will generally be taxable in Hong Kong. |
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ISSN: | 1049-6378 |