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Hong Kong: Consultation on proposals to enhance IP tax deduction regime

Government plans to introduce a bill implementing the proposals within 2026. 

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february 4, 2026

Further to the 2025-2026 budget, the government launched a consultation on its proposals to enhance the intellectual property (IP) tax deduction regime in Hong Kong.

The proposals concern tax deductions for both acquisition costs of IP purchased from associates, as well as for upfront license fees for the rights to use IP.

The government plans to introduce a bill implementing the proposals into the Legislative Council within 2026. 

Read a February 2026 report prepared by the KPMG member firm in Hong Kong

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