“Patent Box” Tax Incentive (Leaflet)
To encourage the industrial and R&D sectors, creative industries and IP users to engage in more IP trading activities, the Government has implemented the “patent box” tax incentive. The tax rate for assessable profits from eligible IP income derived from eligible IPs (i.e. patents, plant variety rights and copyright subsisting in software) has been reduced from 16.5% to 5%.
The relevant legislation has come into effect on 5 July 2024.
Where a claim for the “patent box” tax concession involves an application for a non-Hong Kong patent filed on or after 5 July 2026, a corresponding original grant patent application for the same invention must be filed in Hong Kong in compliance with the local registration requirement.