In this latest edition some of the significant developments have been in the following countries, regions and jurisdictions:

• Australia – Refundable tax offset (cash) refund up to 43.5% of eligible R&D expenses for small companies if in tax losses
• China – Reduced Corporate Income Tax (CIT) rate of 15 percent for High-New-Technology Enterprises (HNTEs)
• Hong Kong (SAR), China - 300 percent super deduction (for the first HK$2 million) and 200 percent super deduction (for amounts exceeding HK$2 million) for qualifying expenditure (type B)
• New Zealand - 15 percent tax credit on eligible expenditure between NZD50,000 and NZD120 million
• Singapore - Immediate and enhanced tax deductions available for activities all along the innovation value chain, from R&D to IP activities
• South Korea - Expansion of benefits for medium-sized enterprises compared to large companies
• Sri Lanka - Up to double tax deduction on R&D expenses under the new Inland Revenue Act, No. 24 of 2017

With the pace of change accelerating R&D incentives continue to evolve and mature in an ever changing complex environment. Encouraging R&D and innovation activities has become a major priority for many countries, regions and jurisdictions. Through enhanced tax deductions for qualifying R&D Expenditure and various incentives available, it has shown that the greater investment in these areas can pay off for many R&D activities.   

In our latest report we outline these enhancements in tabular form to illustrate the R&D benefits for each country in the ASPAC region. This report also highlights related matters companies should consider when determining the best location for R&D activities.

A full comprehensive ‘country by country’ report of the R&D incentive schemes in each ASPAC country is available upon request. Please contact your local ASPAC Service line leader.