Tax alert - Issue 15, July 2012
The Inland Revenue Department (IRD) has released Departmental interpretation & Practice Note No. 49 (DIPN 49) outlining their views on the interpretation of Sections 16EA, 16EB and 16EC of the Inland Revenue Ordinance (IRO). These sections were introduced by the Inland Revenue (Amendment) (No. 3) Ordinance 2011 to give effect to the 2010-11 Hong Kong Budget initiative to allow a deduction for capital expenditure incurred on the purchase of specified intellectual property rights (IPRs) – namely copyrights, registered designs or registered trade marks.