Budget Speech

Intellectual Property Rights

106.      Under the existing tax arrangements, capital expenditure by enterprises to purchase patent rights and industrial know-how is deductible under profits tax. To promote the wider application of intellectual property by enterprises and the development of creative industries, I propose to extend the deduction to cover registered trademarks, copyrights and registered designs. The Inland Revenue Department will formulate detailed proposals.

107.      The Patent Application Grant under the Innovation and Technology Fund provides funding support to Hong Kong companies and inventors in their first patent applications so as to help them capitalise and protect their intellectual work. To further encourage creativity and innovation, we will raise the grant ceiling for each case from $100,000 to $150,000. The expenditure ceiling in respect of patent applications in R&D projects funded by the Innovation and Technology Fund will also be raised to $150,000 correspondingly.

Content | Next Page