\n<\/p>\n
HONG KONG SAR –\u00a0Media OutReach<\/a>\u00a0– 13 December 2021 –\u00a0Taxation can be an effective tool for
\u00a0<\/p>\n A ‘super tax
\u00a0<\/p>\n There are
\ninfluencing corporate behaviour. Cheng & Cheng Taxation Services Limited<\/a>
\n(“Cheng & Cheng’s Taxation”) regards it is the reason why many
\njurisdictions are devoting huge amounts of resources in an effort to attract research
\nand development (R&D) centres. In this, Hong Kong is no exception.<\/p>\n
\ndeduction’ on certain R&D activities was introduced in Hong Kong with
\neffect from the year of assessment 2018\/19. This was a breakthrough in Hong
\nKong’s taxation system as it was the first time that the Inland Revenue
\nDepartment (IRD) had allowed deductions of 300%\/200% on certain
\noperating expenditure. The first
\nHK$2 million spent on qualifying R&D expenses is eligible for a 300% tax
\ndeduction<\/i>. For amounts over HK$2 million, a 200% tax deduction will be
\ngranted. <\/p>\n
\ntwo important tax considerations relating to R&D expenses in Hong Kong:<\/p>\n\n
\ndeduction on R&D activities <\/li>\n
\na Hong Kong corporation to overseas entities<\/li>\n<\/ul>\n