IP tax changes in Hong Kong: the Inland Revenue (Amendment) (No. 2) Bill 2011, published on 25 February 2011, proposes
Hong Kong already allows a 100% tax deduction for capital expenditure on the purchase of patents and industrial know-how (ie: a full deduction against tax in the year of acquisition). The proposed deductions for copyright, registered designs and trademarks would not be quite as generous, with the deduction being spread over 5 years instead, with 20% per year being allowed as a deduction. Anti-avoidance rules will mean that purchases from associated entities will not get a tax deduction.