Tax Reduction for our R&D Partners as DeepTranslate qualified as DLRI
Published on 24 January 2022 by Jeffrey Wan
There is nothing better than having a great start in 2022 and receiving good news one after one! DeepTranslate has been designated by the Innovation and Technology Commission as a Designated Local Research Institution (“DLRI”). Not only does it mean a lot to DeepTranslate, our clients and cooperative partners may also in turn receive immense TAX REDUCTION!
Being qualified as one of the only nine DLRIs in the private sector and the only DLRI under the field of computer science means DeepTranslate has fulfilled specified criteria, including possessing expertise in R&D services in science and technology fields, having qualified R&D personnel and owning good research project management experience and relevant track records.
Following the designation, companies which engage DeepTranslate to provide services with research elements may claim enhanced tax deduction for the payments made. The deduction will be 300% for the first $2 million of the aggregate amount of payments made to DeepTranslate (as a DLRI) for “qualifying R&D activities” and “qualifying expenditures” incurred by the enterprises, and 200% for the remaining amount. There is no cap on the amount of enhanced tax deduction. Enhanced tax deduction also applies to such payments made within the six months before the designation.
DeepTranslate believes this designation can provide us with invaluable opportunities to generate innovative synergies with our clients and partners, unleashing our R&D potential, enhancing our clients’ capacity and providing them with tax reduction on a mutually beneficial basis. For cooperation and enquiry, please email us at email@example.com.
All taxation matters related to the enhanced tax deduction for qualifying R&D activities undertaken by DLRIs under the Inland Revenue Ordinance (IRO) are under the purview of the Inland Revenue Department (IRD) and are subject to the IRD’s consideration, handling and decision under the IRO. For further information, please visit the IRD’s website.