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Ireland explains a new patent box

Ireland explains a new patent box Patent boxing in Ireland

The Irish Revenue published practically department in using Knowladge Department Box, special regime of income taxation that appears of intellectual property.

KDB force into a new financial law for company in 2015, the report period of what started the 1 of January, 2016 and also is belong to income, which appears by literary property software and also in case of small companies it will be other intellectual property which equal or can be patented.

As explained department, the company “will have a right for deduction in 50 percent of its own qualifications income. We can say that the income we can take from intellectual property has taxation in 6,25 percent when the rate of corporative tax is 12,5 percent.

The regime is available for companies, which provided scientific researches according to part 766 of the Taxes Consolidation Act 1997. The department provide the definition of qualifications company, qualifications income and active which appears because of using qualifications active, and it also explains a huge specific demands, which need to be done for claiming the relief.

Author: Olena Kutova
senior lawyer of the Finance Business Service company
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