One imminent piece of legislation which will be of interest to companies involved in developing Intellectual Property (IP) and R&D is the proposed reduction in corporation tax applicable to income streams arising from IP.
While the introduction of the 25% tax credit in respect of R&D activities gave a major incentive to companies on their R&D expenditure; the proposed introduction of the Knowledge Development Box (KDB) will give a reduction in the tax rates applicable to the income arising from the commercialisation of IP activities.
Anecdotally, it is expected that the rate of corporation tax will be reduced to somewhere between 5% and 6.25% for qualifying income; although the definition of what qualifies still needs to be finalized.
It is hoped that the introduction of the KDB will be a further boost to Ireland’s attractiveness to locate FDI’s.
OSMS can advise on the impact that this will have for your business– for a free consultation please email firstname.lastname@example.org or call 087 278 3860.