Hong Kong: Draft legislation on proposed patent box regime
5% concessionary tax rate for Hong Kong-sourced taxable profits derived from use or sale of eligible intellectual property
5% concessionary tax rate for Hong Kong-sourced taxable profits
Draft legislation on a proposed patent box regime that would offer a 5% concessionary tax rate for Hong Kong-sourced taxable (i.e., non-capital) profits derived from use or sale of eligible intellectual property (IP), beginning year of assessment (YOA) 2023-2024, was gazetted on 28 March 2024.
The proposed patent box regime was announced in the 2023-2024 budget (read TaxNewsFlash), and the government launched a consultation on a proposed patent box regime in September 2023 (read TaxNewsFlash).
The draft legislation was scheduled to be introduced into the Legislative Council on 10 April 2024.
For more information contact a KPMG tax professional:
David Ling | davidxling@kpmg.com
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