Italy: Patent box regime change excludes trademarks | KPMG | GLOBAL

Italy: Patent box regime change excludes trademarks from tax benefits

Italy: Patent box regime change excludes trademarks

A “law decree” amends the Italian patent box regime by excluding trademarks from the list of qualifying intangible assets that may be eligible for the tax benefits under the patent box regime.

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Under Italy’s patent box regime, a percentage of income attributable to the use of “qualifying IPs” (intellectual properties) is excluded from the tax base.

The amendment—Law Decree no. 50 (24 April 2017)—removes trademarks (including collective brands that are already registered or in the process of being registered) from the list of items identified as qualifying IPs. This leaves the following as qualifying IPs that are eligible for patent box treatment:

  • Software protected by copyright
  • Patents
  • Legally protectable designs and models
  • Legally protectable processes, secret formulas, and industrial, commercial or scientific knowledge including know-how

Effective date

The amendment applies to options exercised after 31 December 2016—i.e., for calendar year taxpayers, the patent box tax benefits no longer apply to trademarks as of 2017. Taxpayers who exercised the option in tax years “in progress” as of 31 December 2015 or 31 December 2016 may still benefit from the regime with respect to trademarks until 30 June 2021. 

 

Read a May 2017 report [PDF 181 KB] prepared by the KPMG member firm in Italy

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