23/08/2024
Patent Box Regime
The Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Ordinance 2024 (the Amendment Ordinance), enacted on 5 July 2024, offers profits tax concessions for certain assessable profits from an eligible intellectual property income (eligible IP income).
A taxpayer meeting the specified requirements within the Regime qualifies for tax concessions. Under these concessions, the concessionary portion of the taxpayer's assessable profits originating from eligible IP income can be subject to profits tax at the reduced rate of 5% (known as the Tax Concessions).
The Regime is applicable for a year of assessment starting on or after April 1, 2023.
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