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Enhancement to tax competitiveness

Ireland

The Department of Finance has launched a public consultation on the introduction of a new incentive to locate high-value IP jobs in Ireland- the Knowledge Development Box (KDB). Taxand Ireland provides further insight. 

The KDB will be based in part on similar measures (such as the UK patent box) which have existed for many years in countries that compete with Ireland for foreign direct investment. Among other points, the consultation is seeking specific feedback on: 

  • The definition of IP (the focus being on “patents and assets that are functionally equivalent to patents”). Brands/trademarks are not likely to be included as stipulated by the OECD
  • Qualification for the regime (one of the key stipulations of the OECD is that IP has to be generated in the jurisdiction where the tax rate will be applied)
  • Defining the nature of qualifying income and a basis for calculation
  • Interplay with other domestic tax regimes, in particular R&D credits and capital allowances for IP assets
  • The application of a regime to small indigenous enterprises

Discover more: Knowledge Box Consultation


Your Taxand contact for further queries is:
Martin Phelan
T. +353 1 639 5139
E. martin.phelan@williamfry.ie

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Taxand's Take

The consulation will run for 12 weeks from 14 January until 8 April 2015. Multinationals with operations in Ireland should keep up to date of the developments from the consultation.  

Taxand's Take Author

Martin Phelan
Taxand Board member
Ireland

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