16 April 2018 Hong Kong proposes tax deduction regime for acquisition of certain intellectual property rights The Hong Kong Government introduced a legislative bill (the Bill) on March 23, proposing to extend the current tax deduction regime for acquiring intellectual property rights (IPRs) to cover three new types of IPRs, namely: (i) a performer's economic right; (ii) a protected layout-design (topography) right; and (iii) a protected plant variety right. However, royalties received by a nonresident 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 a required tax will be withheld from the payment. Sums received by a nonresident from the sale or assignment of a performer's economic right related to a performance given in Hong Kong on or after the law is enacted will also be deemed taxable in Hong Kong and a required tax will be withheld from the payment. Document ID: 2018-0821 |
