Whether your business is in pharmaceuticals, biotech, medical devices, software, electronics, food and drink or renewable energy, intellectual property and intangible assets are likely to be core parts of what makes your business different and successful. We have the technical knowledge and practical experience to help you maximise your IP opportunities.
Tax relief is available for capital expenditure on a broad range of intangible assets. The range of assets qualifying for relief is extensive and includes patents, brands, trademarks, copyrights and goodwill so related to these assets. Finance Act 2014 extended this list of qualifying intangibles to include customer lists in certain instances. Companies carrying on a trade are entitled to claim a tax write-off over the accounting life of the asset, or over 15 years. In prior years, the relief claimable was restricted to 80% of trading profits related to such assets, however this restriction has been removed in Finance Act 2014.
Of perhaps greater importance, Budget 2014 announced the introduction of a “Knowledge Development Box”. This will be an income based regime and will be designed to deliver an ongoing effective rate of tax on intangible assets lower than 12.5%. Public consultation on the development of the regime has commenced with legislation expected later in 2015 to be effective in 2016.
How KPMG can help
- Maximising deductions for IP purchases
- Licensing using Ireland’s IP regime
- Valuation of IP
- Securing tax-free patent income
- Ensuring your Irish IP strategy works with your home country tax and legal system
- Identifying qualifying intangible assets for the new relief
- Maximising relief available under the new intangible assets regime.
If you require further information on intellectual property issues, please contact Conor O'Sullivan or any member of our tax team.