Under the new budget, a tax deduction may be allowed for expenditures related to acquisition of intellectual property.The budget proposes enhancements of preferential tax regimes in capital management and shipping industries.  On 26 February 2025, the Financial Secretary of Hong Kong announced the 2025/26 Hong Kong Budget. The key proposed tax measures are highlighted below.A tax deduction is proposed for intellectual-property (IP) related expenditures, including lump sum licensing fees for acquiring the rights to use IP, and related expenses incurred on purchase of IP (or the right to use IP) from associates.One proposal would enhance the preferential tax regimes for...