HK's Research Cash Rebates Launched

by Mary Swire, Tax-News.com, Hong Kong

01 April 2010

Hong Kong’s Innovation and Technology Commission (ITC) has confirmed that the research and development (R&D) cash rebate scheme, which was approved by the Legislative Council and announced in the 2010-11 budget, would be launched on April 1.

In the budget, it was disclosed that, to encourage businesses to increase their investment in R&D and strengthen their co-operation with local public research institutions, Hong Kong’s Legislative Council Finance Committee had, in January 2010, approved a funding commitment of HKD200m (USD25.75m) to set up the scheme.

The scheme provides a cash rebate equivalent to 10% of a company's investments in two types of applied R&D projects, comprising projects wholly funded by the Innovation and Technology Fund (ITF) and projects funded entirely by companies and conducted in partnership with designated local research institutions.

Certain aspects of partnership projects will not be eligible for cash rebates under the scheme. These include product enhancement and related work, companies’ in-house R&D work, and research projects outside the science and technology fields, such as market research and management studies.

The designated local research institutions include local universities, R&D centres set up under the ITF, the Hong Kong Productivity Council and the Vocational Training Council.

Recommended