To develop the economy, Financial Secretary John Tsang has proposed initiatives to boost intellectual property trading and treasury services, and to launch another iBond issue.
Delivering his 2015-16 Budget today, Mr Tsang said, as an international business centre, Hong Kong is well placed to become a premier IP trading hub providing high value-added IP services in the region.
As such, he will earmark $23 million in the coming three years to offer IP consultation, manpower training and other services to small and medium enterprises.
"Business and professional services generate many quality employment opportunities for Hong Kong.
"As regards tax deduction for capital expenditure incurred on the purchase of IP rights, I shall consider extending the scope to cover more types of IP rights as appropriate."
To attract multinational and Mainland enterprises to establish corporate treasury centres in Hong Kong to perform treasury services for their group companies, he said the Government will amend the Inland Revenue Ordinance to allow, under specified conditions, interest deductions under profits tax for corporate treasury centres and reduce profits tax for specified treasury activities by 50%.
As the inflation-linked retail bonds (iBond) introduced in 2011 have been well received by the public and helped promote the retail bond market, he said the Government will launch an iBond issue of up to $10 billion with a three-year maturity.
"Following the existing practice, the issuance will target Hong Kong residents, and interest will be paid to bond holders every six months at a rate linked to the inflation rates of the last half-year period."
The Hong Kong Monetary Authority will announce the details in due course, he added.
