On 23 March 2018, Hong Kong gazetted the Inland Revenue (Amendment) (No. 2) Bill 2018, which expands the scope of profits tax deductions for capital expenditure incurred for the purchase of intellectual property (IP) rights from the existing five types to eight. The additional three types of IP rights include rights in layout design (topography) of integrated circuits, plant varieties, and performances. The five types of IP rights that are currently eligible for tax deductions are patents, k…