Tax Tip: Knowledge Development Box

Reduce the 12.5% rate of tax where possible to 6.25% by making maximum use of the Knowledge Development Box

The Knowledge Development Box (KDB) is a relief that applies to income from qualifying patents, computer programmes and, for smaller companies, certain other certified intellectual property (IP).

If a company qualifies for KDB, it may be entitled to a deduction equal to 50% of its qualifying profits. This means its qualifying profits may be taxed at 6.25%.

To qualify for KDB a company must create a usable qualifying asset from qualifying Research and Development activities from which it earns income.

A qualifying asset is one that is created from R&D activities. Such assets include:

  • Computer programs
  • An invention protected by a qualifying patent
  • IP for small companies which is certified by the Controller of Patents as patentable, but not patented.

To find out more about Knowledge Development Box, please arrange a consultation with one of our advisors.

Copyright © 2020 McAvoy & Associates, All rights reserved.


Joe McAvoy

Director

Tax Services

Call: +353 21 432 1321

View Profile

Dara Burke

Director

Tax Services

Call: +353 21 432 1321

View Profile

Shane Carroll

Director

Business Advisory

Call: +353 21 432 1321

View Profile