2011-03-04-KPMG_China-就购买版权_注册外观设计或注册商标的资本开支提供利得税扣减_3页_168kb

The 2011 Inland Revenue (Amendment) (No. 2) Bill extends tax deductions for capital expenditure on purchasing copyright, registered designs, and registered trademarks under the Inland Revenue Ordinance. Previously, section 16E allowed deductions only for patent rights and know-how. Now, new sections 16EA to 16EC apply:

• Section 16EA permits deduction of capital expenditure over five years of assessment.
• Section 16EB treats sale proceeds as trading receipts if the rights were previously deducted.
• Section 16EC includes anti-avoidance rules, prohibiting certain license-back arrangements and transactions with associated parties. This expansion aims to support intellectual property acquisitions, but deductions remain limited to purchases, not internal development costs.