Hong Kong's Legislative Council has published a discussion paper prepared for a recent meeting of the Panel on Commerce, Industry, Innovation and Technology. This includes three main proposals to broaden the scope of tax deductions for the purchase of IP or the rights to use IP, summarized as follows:
Allowing tax deduction of the cost of purchasing certain IPs from associates
The first proposal seeks to relax section 16EC(2) of the Inland Revenue Ordinance (IRO), which currently disallow…