Italy: Implementing decree, patent box regime

Italy: Implementing decree, patent box regime

A decree providing rules for implementing Italy’s patent box regime—as approved in July 2015—has been published in the official gazette.

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The implementing decree (published 20 October 2015) for the patent box regime clarifies certain technical aspects of the patent box measures. For example, the benefits under the patent box are available for income arising from the tax year that follows the tax year that was in progress on 31 December 2014 (i.e., 2015 for calendar-year taxpayers). 

The decree also outlines certain transitional measures and provides clarifications concerning:

  • Who is eligible to benefit from application of the patent box regime—generally, Italian resident entrepreneurs, permanent establishments, and non-resident companies if they (1) are residents in a treaty-partner country that has an effective exchange of information agreement with Italy, and (2) have a permanent establishment in Italy to which the intangibles are "attributable"
  • How the election to apply the patent box regime is made and for what period of time does the patent box election apply
  • Which intangible assets qualify for relief under the patent box regime
  • What is meant by "use" under the regime
  • Which research and development (R&D) costs qualify for relief
  • How is the eligible tax base calculated
  • What are the documentation requirements


Read a November 2015 report [PDF 246 KB] prepared by the KPMG member firm in Italy: Italy issues the patent box implementing decree

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