Ireland: RIP Patent tax exemption

Tuesday’s Budget in Ireland confirmed the information in the Irish National Recovery Plan 2011 – 2014 that the exemption from tax for patents has been abolished, with effect from 24th November 2010 (the date of publication of the National Recovery Plan).

This was Ireland’s only tax incentive specifically aimed at corporate intellectual property – there are no R&D reliefs, and the tax reliefs for authors/artists etc are for individuals rather than companies.  None of this is likely to help with the Irish government’s desire to see more IP investment in Ireland – currently with one of the lowest rate of patent filing in Europe.

2 thoughts on “Ireland: RIP Patent tax exemption

  1. Fred Logue

    Ireland has two other schemes directly targeted at corporate IP. There is an R&D credit of 25% for R&D expenditure in addition there is also a tax write off in relation to the acquisition and development of intangible assets which covers almost all forms of IP.

    The patent scheme was in fact the only IP scheme which benefited individuals since tax free royalties were available to be paid to inventors and shareholders of patent holding companies.

    See

    http://www.revenue.ie/en/tax/ct/research-development.html

    and

    http://www.revenue.ie/en/practitioner/tax-briefing/2010/no-092010.html

    Reply
  2. editor Post author

    Thanks for the update – I had understood that the R&D relief was also to be scrapped, it’s a relief to know that it isn’t! I assume that it is still limited to relief on the excess of R&D expenditure over that incurred by the company in 2003?

    Reply

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