
Hong Kong’s Patent Box Regime and Effects
Background
Key Features
● R&D Requirements: The IP must be self-developed. Outsourced or acquired IP is subject to adjusted eligible profit.
● Registration Requirements: Qualifying IP can be registered globally but must be registered in Hong Kong within two years of implementation for patents and plant variety rights.
Advantages of the Regime

● Flexible Registration: Global IP registration is permitted, with local registration required only after two years.
● Short Patent Approval Cycle: Hong Kong’s fast patent approval process benefits businesses seeking quick protection.
● Enhanced Branding: Registering patents in Hong Kong boosts competitiveness and market visibility.
Impact on Hong Kong and Mainland Companies
● International Competitiveness: Reduces tax burdens on IP-related income, improving global market competitiveness.
● Strategic Positioning: Facilitates global market expansion and investment attraction through Hong Kong-registered IP.
● International Branding: Registering patents in Hong Kong strengthens international brand presence.
● IP Protection: Hong Kong’s robust IP protection system helps Mainland companies address infringement risks in global markets.