The Knowledge Development Box in Ireland – A Quick Overview.14 July, 2017
In 2016, Ireland introduced a new tax-based incentive for intellectual property generating Irish companies referred to as the Knowledge Development Box. The KDB is a corporation tax relief. Launched as “best in class” and the “world’s first OECD-compliant” regime, the KDB provides that profits generated by an Irish company from the commercial exploitation of certain of its qualifying assets (including qualifying patents and copyrighted software) may effectively be taxed at a reduced rate of corporation tax.
At its core, the KDB is intended to further incentivize innovation and research and development activities in Ireland and complements other innovation incentives already in place, such as the R&D tax credit scheme in Ireland.