On 29 June 2018, the Hong Kong Government announced the publication of the Inland Revenue (Amendment) (No. 5) Ordinance 2018 in the Official Gazette, which came into operation the same day. The Ordinance expands the scope of profits tax deductions for capital expenditure incurred by enterprises for the purchase of intellectual property (IP) rights from five types to eight with effect from the year of tax assessment 2018/19.
The five types of IP rights that were originally eligible (and re…