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10 May 2018

Hong Kong proposes increased tax deductions for qualifying research and development activities

The Hong Kong Government introduced a legislative bill (the Bill), on April 20, proposing an enhanced tax deduction regime for qualifying research and development (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.

A Global Tax Alert, attached below, provides additional details.

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Document ID: 2018-0983

 

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