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16 OctFri
Fri
Hong Kong Inland Revenue Department: Latest NewsAI Score5050
The Hong Kong SAR Government published the Inland Revenue (Amendment) (Tax Deduction for Intellectual Property Expenditure) Bill 2026 in the Gazette on October 16, relaxing tax deduction arrangements for relevant capital expenditures incurred by enterprises in acquiring eligible intellectual property or obtaining licenses to use it.
The Hong Kong SAR government gazetted the Inland Revenue (Amendment) (Tax Deduction for Intellectual Property Expenditure) Bill 2026, relaxing tax deductions for capital expenditure incurred by enterprises on acquiring intellectual property or related usage licenses. The bill will apply to intellectual property acquisition or license contracts signed on or after 1 April this year, covering tax deductions for three types of capital expenditure: acquiring intellectual property from related parties, intellectual property used by licensees outside Hong Kong, and prepaid license fees for intellectual property usage.
The Hong Kong government announced that the Stamp Duty (Amendment) (No. 3) Bill 2026 will be gazetted on October 2, implementing the relaxed stamp duty relief for intra-group asset transfers proposed in the 2026-27 Budget. Under current rules, affiliated enterprises are recognized if they directly or indirectly hold 90% or more of each other's issued share capital; the bill will lower this shareholding threshold to 75%, and include direct or indirect beneficial interests and voting rights as recognition criteria, covering new types of enterprises such as limited liability partnerships and companies limited by guarantee that do not issue shares.
Chapter 7 of the 2026 Policy Address focuses on enhancing social well-being, covering directions such as quality education development, talent cultivation, youth, women, and family development. In the education sector, an AI digital education learning resource platform will be launched, the articulation of primary and secondary school curricula will be optimized, and the Education Ordinance will be revised to require teachers to hold practicing certificates. The Excellence Enhancement Programme for public schools will be launched in the 2026/27 academic year. At the same time, the additional training allowance of HK$1,000 per month for registered apprentices will be extended for two years, and Upskill Hong Kong is expected to release the first phase of the skills training framework in the first quarter of 2027.
In the 2026 Policy Address delivered by the Chief Executive of the Hong Kong Special Administrative Region on September 16, 2026, two personal tax measures to encourage childbirth were proposed, both requiring legislative amendments to implement. The first measure raises the child allowance for the second and subsequent children born to taxpayers on or after September 16, 2026, as well as the additional child allowance for the first two years after a child's birth, from HK$140,000 to HK$160,000. This arrangement takes effect from the 2026/27 tax year, and claims can be made through established procedures until the child reaches the age of 25.