Dec. 2011 - Tax incentives for acquisition of Intellectual Property Rights
Prior to the Inland Revenue (Amendment) (No. 3) Ordinance 2011, capital expenditure incurred by taxpayers to purchase intellectual property rights (“IPR”) would only be tax deductible if the IPR concerned were patent rights and rights to any know-how, the deduction of which is governed by Section 16E of the Inland Revenue Ordinance (“IRO”).
The Legislative Council (“Lego”) passed the Inland Revenue (Amendment) (No. 3) Bill 2009
(“The Bill”) on 6 January 2010 which has become the Inland Revenue (Amendment) Ordinance
2010 (the Amendment Ordinance”) and was published in the gazette on 15 January 2010.