Italy: “Patent box” regime guidelines

Italy: “Patent box” regime guidelines

The Italian tax authority published a circular with guidelines and procedures for implementing the “patent box” regime.

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The patent box regime in Italy allows a percentage—for calendar year taxpayers, 30% in 2015, 40% in 2016, and 50% in 2017 and later—of qualifying income attributable to the use of certain eligible intangible assets or intellectual property is excluded from the corporate income tax and regional tax base.

The circular (no. 11/E (7 April 2016)) sets forth information about:

  • How to make an election to apply the patent box regime incentives
  • When to file a submission for application of the patent box regime (generally, by the date of the income tax return’s deadline, so for calendar year 2015, by 30 September 2016)
  • Rules for seeking a mandatory or optional tax ruling from the tax authority, and information about when a tax ruling is mandatory 
  • Intellectual properties that are eligible for the patent box regime and those that are excluded (excluded ones including copyrights, but not copyright-protected software, and list of names such as client or supplier lists)
  • What research and development (R&D) costs are eligible under the patent box regime
  • How the eligible tax base is calculated
  • What is “eligible income”

 

Read a May 2016 report [PDF 539 KB] prepared by the KPMG member firm in Italy: Italian revenue agency comments on the patent box regime

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