What the BEPS? – Italian Patent Box: Preferential Tax Regime to Begin in 2015

Another day, another patent box…

Tax-News.com (Ulrika Lomas) recently reported:

“The decree to implement Italy’s “patent box” has been signed by Minister of the Economy and Finance Pier Carlo Padoan and Minister of Economic Development Federica Guidi and should be gazetted shortly.

The patent box will offer a preferential tax regime in 2015 for income derived from the use or licensing of qualifying intangible assets (such as patents, trademarks, processes, and other intellectual property) that are linked to research and development (R&D) activities carried out in Italy.

Under the optional scheme, businesses will be able to exclude 50 percent of their income derived from such assets from income taxes (either corporate or individual) and the regional tax on production.

Once a business opts into the regime, the option will be irrevocable and have a duration of five years. For the first two years of its operation, the income exclusion will amount to 30 percent in the first year, 40 percent in the second year, and reach 50 percent from the third year.

Based on current corporate tax rates, the scheme will result in an overall corporate tax rate that will reach as low as 15.7 percent, for eligible income, from as early as 2017.”

See more at: http://www.tax-news.com/news/Italian_Patent_Box_To_Be_Implemented____68767.html#sthash.XLTZfZdV.dpuf

Robert Robillard, Ph.D., CPA, CGA, MBA, M.Sc. Econ.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at” drtp.ca

DRTP Consulting Inc. solutions go beyond transfer pricing and international tax solutions. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. DRTP Consulting Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from DRTP Consulting Inc. as required.

Posted by drtp On 5 August 2015