Joe Pollard (EY Ireland) explains how Ireland’s new knowledge development box works.
The much anticipated legislation introducing the Irish knowledge development box (KDB) from 1 January 2016 was published in the recent Finance Bill.
The KDB is aimed at incentivising innovative research and development (R&D) activities by taxing profits from patented inventions and copyrighted software at an effective rate of 6.25%. The KDB will be the first OECD compliant tax regime adopting the nexus approach which seeks to link the relief to the proportion of R&D in Ireland as a percentage of overall R&D expenditure inclusive of overall group R&D and amounts paid to acquire intellectual property (IP).
The KDB is a further addition to Ireland’s existing tax landscape to encourage investment in innovation activities in Ireland. Alongside the 12.5% trading rate for companies the 25% R&D tax credit regime and tax depreciation for intangible assets the KDB...
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Home >Articles > Ireland’s knowledge development box
Ireland’s knowledge development box
Joe Pollard (EY Ireland) explains how Ireland’s new knowledge development box works.
The much anticipated legislation introducing the Irish knowledge development box (KDB) from 1 January 2016 was published in the recent Finance Bill.
The KDB is aimed at incentivising innovative research and development (R&D) activities by taxing profits from patented inventions and copyrighted software at an effective rate of 6.25%. The KDB will be the first OECD compliant tax regime adopting the nexus approach which seeks to link the relief to the proportion of R&D in Ireland as a percentage of overall R&D expenditure inclusive of overall group R&D and amounts paid to acquire intellectual property (IP).
The KDB is a further addition to Ireland’s existing tax landscape to encourage investment in innovation activities in Ireland. Alongside the 12.5% trading rate for companies the 25% R&D tax credit regime and tax depreciation for intangible assets the KDB...
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