EU: Report on patent boxes, hybrid entities | KPMG | GLOBAL

EU: Report on patent boxes, hybrid entities

EU: Report on patent boxes, hybrid entities

The EU Code of Conduct Group for Business Taxation last week reported to the Council of the EU (ECOFIN) on various matters including the status of EU patent boxes and hybrid entity mismatches.


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The report states that, except for the Netherlands, agreement was reached on an approach for determining whether or not intellectual property (IP) income may qualify for preferential tax treatment and that none of the IP regimes examined was compatible with this approach. This largely follows the “nexus approach” being development by the OECD under BEPS Action 2.

The report also sets out guidance agreed to on intra-EU hybrid entities (entities that are treated as transparent in one EU Member State but non-transparent in another). The report notes that further work is required on hybrid permanent establishment rules.


Read a December 2014 report [PDF 196 KB] prepared by KPMG’s EU Tax Centre: Code of Conduct Group reports to ECOFIN on patent boxes, hybrid entities

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