The Government published in the Gazette today (November 2) the Inland Revenue (Amendment) (No. 7) Ordinance 2018 to implement the initiative announced in the Chief Executive's 2017 Policy Address of providing enhanced tax deduction for the expenditures incurred by enterprises on research and development (R&D) activities in Hong Kong.

     A government spokesman said, "To encourage more enterprises to conduct R&D locally so as to promote technological innovation and economic development as well as to groom local R&D talent, the Amendment Ordinance will provide enhanced tax deduction. This also addresses the calls from the business community. We aim to encourage more R&D investment from private enterprises, thereby gradually reversing the ratio of public sector expenditure versus private sector expenditure on R&D from government-led to private-led, which is more sustainable."

     The Ordinance stipulates that R&D expenditures are now classified into either "Type A expenditures" which qualify for 100 per cent deduction or "Type B expenditures" which qualify for enhanced tax deduction. The enhanced tax deduction for "Type B expenditures" is a two-tier deduction regime. The deduction is 300 per cent for the first $2 million of the aggregate amount of payments made to "designated local research institutions" for "qualifying R&D activities", and expenditures incurred by the enterprises for in-house qualifying R&D, and 200 per cent for the remaining amount. There is no cap on the amount of enhanced tax deduction. The arrangement is applicable to R&D expenditures incurred by enterprises on April 1, 2018, and thereafter.

     In addition, the Ordinance also empowers the Commissioner for Innovation and Technology to designate any university or college located in Hong Kong, or any other institute, association, organisation or corporation that undertakes "qualifying R&D activities" in Hong Kong, as a "designated local research institution" for tax deduction purposes. R&D service providers which provide R&D services in Hong Kong and are competent to provide such services may apply to the Innovation and Technology Commission (ITC) for designation. The detailed conditions and application procedures for designation will be available on the ITC webpage shortly.

     The Home Affairs Bureau today (November 2) announced the re-appointment of Mr Vincent Chow Wing-shing as Chairman of the Advisory Committee on Arts Development (ACAD). The new appointments and re-appointments are made for a two-year term from November 1, 2018 to October 31, 2020.

     The membership of the ACAD in its new term is as follows:

Chairman
——– 
Mr Vincent Chow Wing-shing

Members
——-
Mr Arnold Chan Kwan-yeung *
Ms Susanna Chiu Lai-kuen 
Professor Gilbert Fong Chee-fun 
Dr Ho Siu-kee
Miss Cecilia Ho Chung-chee *
Mr Chris Ip Ngo-tung *
Ms Catherine Kwai Yuk-nin 
Mr Ronald Kwok Wing-chung 
Mr Lau Hang-on *
Mr Danny Lee Chin-fai *
Ms Candice Leung Wai-yee 
Mrs Margaret Leung Ko May-yee *
Professor Lui Yu-hon
Professor Christopher Pak Tak-wan  
Ms Helen So Hiu-ming *
Miss Agnes Tang In-kwan
Ms Lina Yan Hau-yee 
Dr Royce Yuen Man-chun

Ex-officio Members
——————
Representative from the Home Affairs Bureau
Representative from the Leisure and Cultural Services Department
Representative from the Hong Kong Arts Development Council

(* new appointees)

     The ACAD advises the Secretary for Home Affairs on matters relating to local arts development, including issues in relation to the use of the Arts and Sport Development Fund (Arts Portion) and the operation of the Arts Capacity Development Funding Scheme, funding policies and strategies, issues in relation to the strategies for supporting the development of visual arts, the promotion of cultural exchange and assessment of applications received under the Arts Development Fund, and the strengthening of cultural software.

     The Employment (Amendment) (No. 3) Ordinance 2018, which was passed by the Legislative Council (LegCo) on October 25, was gazetted today (November 2).

     "The Amendment Ordinance seeks to increase the statutory paternity leave under the Employment Ordinance (Cap. 57) from three days to five days. Male employees with children born on or after the commencement of the Amendment Ordinance are entitled to five days' paternity leave for each confinement of his spouse or partner if they fulfil other requirements as stipulated in the law," a spokesman for the Labour Department said.

     The Amendment Ordinance will come into operation on a day to be appointed by the Secretary for Labour and Welfare by notice published in the Gazette. The Government is arranging the gazettal of the Commencement Notice (CN) and the tabling of the CN at the LegCo. If the CN is supported by the LegCo, the Amendment Ordinance will come into effect by Lunar New Year at the earliest.

Attention TV/radio announcers:

Please broadcast the following as soon as possible:

     The Civil Engineering and Development Department today (November 2) announced that the Chai Wan Public Fill Barging Point will be reopened at 11.45am.

     Lichtbende from the Netherlands will perform "Me and the Flea", featuring magic lanterns and live music, in December.
 
     "Me and the Flea" is a hilarious slapstick work about an adorable street dog who finds a new home with a caring family. What the family does not know is that there is a family of fleas hidden in its fur and ready to terrorise the entire household. As they try to fight against the fleas in all possible ways, a witty and bizarre story unfolds ahead of a surprising ending.
 
     Fusing visual arts, music and theatre, Lichtbende brings light to life and will introduce a fantasy world of light and shadow to the audience. Since its founding in 2010, Lichtbende has created light art performances which make a multi-layered reality visible and tangible by combining antique magic lanterns with live music. Lichtbende has toured in Brazil, Turkey, Chile and many countries in Europe. The arts group is beloved by audiences from different countries for its poetic associative shows.
 
     "Me and the Flea" by Lichtbende is one of the highlights of the "Cheers!" Series presented by the Leisure and Cultural Services Department. The performance will be held at 3pm and 5pm on December 23 (Sunday) at the Black Box Theatre of Tai Po Civic Centre, at 3pm and 5pm on December 25 (Tuesday) at the Cultural Activities Hall of Tsuen Wan Town Hall, and at 3pm on December 26 (Wednesday) at the Auditorium of North District Town Hall. Tickets priced at $200 (Tai Po Civic Centre and Tsuen Wan Town Hall) and $140 and $180 (North District Town Hall) are now available at URBTIX (www.urbtix.hk).
 
     The show is best suited for those aged 4 or above. Audience members will be admitted with tickets regardless of age. Those aged under 3 will not be admitted.
 
      "Little Shadow Puppeteer Workshop" (to be conducted in English with simple Cantonese interpretation) will offer a chance for participants to create their own shadow figures from cardboard and translucent coloured plastic with their creativity and imagination, and to make the characters come to life with light. The workshop, suitable for participants aged 4 or above, will be held at 2.30pm on December 24 (Monday) at the Black Box Theatre of Tai Po Civic Centre. Tickets priced at $80 are also available at URBTIX.
 
      For telephone credit card bookings, please call 2111 5999. For programme enquiries and concessionary schemes, please call 2268 7323 or visit www.lcsd.gov.hk/CE/CulturalService/Programme/en/f_entertainment/programs_645.html.