The Government is committed to reforming the local patent system in order to ensure that it would continue to meet present-day circumstances and also facilitate the development of the Hong Kong Special Administrative Region (the Hong Kong SAR)'s innovation and technology sector. On 19 December 2019, the Government introduced the original grant patent system for standard patents, refined the short-term patent system and introduced an interim regulatory measure of prohibiting use of certain confusing or misleading titles and descriptions relating to patent practice in the Hong Kong SAR.
Pilot Scheme – Deferral of Formality Examination of Applications for Standard Patents by Original Grant (Information Sheet)
Starting from the 2023/24 year of assessment, the qualifying profits derived from eligible IP income of an owner or licensee of an eligible IP can be chargeable to profits tax at the concessionary tax rate of 5% (instead of the normal tax rate of 16.5%). The eligible IP must be generated from research and development activities, and Hong Kong standard patents (O) and short-term patents are examples of eligible IPs. From 5 July 2026 onwards, in order to enjoy the concessionary tax rate, if the eligible IP is a patent filed or granted outside Hong Kong, there must be an application for or grant of a standard patent (O) or short-term patent (to be followed by a post-grant substantive examination request) in Hong Kong in respect of the same invention.
For details, please refer to the dedicated webpage “patent box” tax incentive.