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News
5 February 2010
Tax Relief for Costs of Applying to Register Patents and Trade Marks
The Finance Bill 2010 has now been published. From the point of view of IP owners who are taxed in Ireland, there are two important points to note:
1. Last year, a tax relief was introduced for companies incurring capital expenditure on acquiring intangible assets, e.g. where a company outlaid money in obtaining assignment of patent, trade mark, copyright or design rights. This did not cover the core IP activities of companies - protecting their own innovations and brands, e.g. by applying to register their own patents, trade marks and designs. This year's Finance Bill now provides that the same tax relief will apply to expenditure on applications for the registration of patents, trade marks, designs, etc., all of which can be offset against corporation tax
2. The existing tax exemption for income arising from patent royalties is maintained. There had been speculation that this exemption would be cut, despite it being a strong driver for innovation and R&D for Irish companies.
FRKelly had made submissions on behalf of each of these issues and we strongly welcome the incentive which the two measures provide to encourage intellectual property.
Read More: Ireland's IP-friendly Tax Regime Expanded
