Patent Box
The Challenge
The process of manufacturing transformation is evolving and replacing traditional industrial activity with high-tech services and processes. Investing in R&D and protecting your intangible assets is an activity that is not always easy or simple, especially when you consider the recent modifications.
Intangible assets are intellectual property, industrial patents, designs, processes, formulas and information relating to experience gained in legally protected fields such as industrial, commercial or scientific areas (this is a list which was updated in 2017 by the Community Directive, trademarks are now excluded from this list).
For this reason the Community system has recognised the Patent Box as a voluntary facilitation scheme which can apply to income derived from the direct or indirect use of intangible assets.
Exempting companies are subject to corporate income tax which carry out research and development activities also through research contracts which were concluded with independent third-party companies, universities, research entities or the equivalent.
The Solution
Eurokleis is proud to have legal experts in its team who support the company both in the definition phase of the requirements and in the phase which ensures companies make the most of the tax advantage.
Eurokleis, as well as following companies in all the steps required to obtain the Patent Box facilitation, quantifies the amount of income that can be simplified on the basis of the ratio of qualified costs to total costs. Moreover, in view of the International Ruling procedure, the identification of income attributable to intangible goods equally plays a key role.
It is Eurokleis’ task to define the evaluation methods considered the most appropriate for the characteristics of the intangible good being facilitated. The proposed approach must value the intangible asset according to the economic/ income benefits that the asset itself is capable of generating.
Eurokleis follows the following steps:
- Two Diligence: Verification of the existence of PatentBox access requirements;
- Accounting/ Legal Examination: Determination of the eligible income from direct and/ or indirect use of intangible assets;
- IP Regimes: for the years following 2015 the accounting system for cost and revenue recognition for the single intangible asset is defined as tracking and tracing requirements. Only when, throughout the four-year reference period, the total costs will be detected according to the criteria for tracking and tracing, the coefficient can then be determined for a single intangible asset;
- Assistance in the preparation and activation of the international ruling procedure with the Revenue Agencies.
Detaxation
IRES, IRPEF e IRAP
%
from
%
increasing progressively to
Patent Box in numbers
Source agency revenue – February 2016
Lombardia
Veneto
Lazio
- Trademarks 36%
- Know How 22%
- Patents 18%
- Models 14%
- Software 10%
Author of the article
Debora Valenti
senior consultant
Chartered Accountant and Accounting Auditor
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