On 2 November 2018, Hong Kong published Inland Revenue (Amendment) (No. 7) Ordinance 2018, which provides for the implementation of the enhanced tax deduction for expenditures incurred by enterprises on research and development (R&D) activities in Hong Kong. The Ordinance provides that R&D expenditures are classified as either:
- Type A expenditures, which qualify for 100% deduction; or
- Type B expenditures, which qualify for enhanced tax deduction.
The enhanced tax deduction for T…