If your company is liable to Corporation Tax and you have a granted patent you may be eligible for a reduced rate of Corporation Tax.

In the UK, the Government has afforded patent owners a reduced rate of Corporation Tax for profits on the sale of patented products since 2013, this is known as the Patent Box Scheme. This reduced rate of Corporation Tax applies to UK incorporated companies who own or exclusively licence patents granted by the UK Intellectual Property Office or other European jurisdictions.

In Ireland there is a similar policy known as the Knowledge Development Box introduced in 2015 to encourage innovation. If you are a company incorporated in Ireland and have a patent granted by the Irish Patent Office or other European jurisdictions you may be entitled to avail of the Knowledge Development Box.

Many of our clients are now availing of this significant tax break as a result of their innovative culture. The Patent Box Scheme or the Knowledge Development Box together with existing R&D tax credits, means there has never been a better time to innovate.

Hanna IP can provide you with advice in relation to obtaining patents to allow you to avail of these Corporation Tax Savings.