The introduction of a "knowledge development box" in Ireland from 1 January 2016 has further enhanced Ireland's intellectual property ("IP") tax regime and bolstered Ireland's reputation as an attractive location for the development, holding and exploitation of IP. Among the incentives available for IP holding companies located in Ireland are:
- access to the 12.5% corporation tax rate;
- availability of tax depreciation for capital costs incurred on acquiring or developing IP;
- tax credits for research and development expenditure;
- a knowledge development box with an effective tax rate of 6.25% applicable to certain patent and copyright income;
- availability of deductions for interest expenses incurred on borrowings to fund the acquisition of IP; and
- relief for foreign withholding tax suffered on royalty income.
Please click on the link below to view our full Intellectual Property Tax regime advisory which gives an overview of each of these incentives and the advantages that Ireland has to offer.
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