Hong Kong Proposes Increased Tax Deductions for Qualifying R&D

The Hong Kong government introduced a legislative bill (Bill) on Apr 20, 2018, proposing an enhanced tax deduction regime for qualifying R&D activities. Under the Bill, qualifying R&D expenditure on a qualifying R&D activity will be eligible for increased 200% to 300% tax deductions with...

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Bibliographic Details
Published inJournal of International Taxation Vol. 29; no. 8; p. 8
Main Authors Wong, Charlotte, Finnerty, Chris, Parsch, Kazuyo, Yap, Bee-Khun, Martin, Trang, Ho, Tracy, Chan, Florence
Format Trade Publication Article
LanguageEnglish
Published Boston Thomson Reuters (Tax & Accounting) Inc 01.08.2018
Subjects
Bills
Expenditures
Intellectual property
International taxation
R&D
Research & development
Research & development expenditures
Tax deductions
Tax increases
China
Hong Kong China
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Summary:The Hong Kong government introduced a legislative bill (Bill) on Apr 20, 2018, proposing an enhanced tax deduction regime for qualifying R&D activities. Under the Bill, qualifying R&D expenditure on a qualifying R&D activity will be eligible for increased 200% to 300% tax deductions without limitation. Other R&D expenditure that does not qualify for the above deduction will continue to be eligible for the normal 100% tax deduction. The increased tax deductions are available only for payments to a designated local research institute if the R&D activities are subcontracted out. For in-house R&D activities, the expenditure must be incurred for qualifying R&D activities that a taxpayer undertakes and carries on wholly within Hong Kong.
ISSN:1049-6378