Tax Order (Download the text here) Simplified patent box regulation
Part of the income derived from certain types of intangible assets goes to the package from the tax deduction. For a grant that would increase research and development costs on these assets by 90 percent.
With The new mechanism provides broader exemptions for income tax and IRAP purposes And overall simplification.
Budget Act 2022 (Art. 1, paragraph 10, n. 234 of the 30 December 2021 Act)) further interfered with the modification of art. No. 6 of the Legislative Order. 145/2021, Ensures a “super detection” of research and development costs, increasing the amount from 90% to 110%But knowledge of how to invest in brands and worthwhile intangible assets
To learn more, download the eBook New “patent box”: from income tax deductions to “super deductions” for research and development costs
1) Change the order of the patent box
I work with the tax mandate AndInstitutional terms are repealed (Article 1, paragraphs 37 to 45, Act 190/2014 and Article 4, Legislative Order 34/2019) The tax deduction set aside for business income holders refers to the expenses incurred on certain intangible assets used to carry on their business. Henceforth, instead of calculating the portion of income deducted from the total taxable amount, yes A 90 percent increase would apply to those costs Budget Act 2022 110%.
The new rules apply at will. Option is valid for five tax periods, It is irreversible and renewable (Paragraph 1) and Useful for income tax and IRAP purposes (Comma 5).
To learn more, download the eBook New “patent box”: from income tax deductions to “super deductions” for research and development costs
2) Patent Box: Residence requirement and allowable costs
Functionally, the new version of the grant deals with research and development costs incurred by business income holders.
According to paragraph 2, i Business income earners can use the option to reside in countries where the agreement exists to avoid double taxation And with whom communication is useful.
Expenditure on research and development on specific intangible assets for income tax purposes, for those who have access to the new regime:
- Patented software;
- Industrial patents;
- Designs and models;
The condition for utilizing the facility is that the assets in question are used directly or indirectly to carry out one’s business activity.
The procedures for using the option will be defined in terms of the Director of Revenue Agency.
To learn more, download the eBook New “patent box”: from income tax deductions to “super deductions” for research and development costs
3) Patent Box: Research with external subjects
Then it was established The new rules apply subject to the requirement that subjects using the option carry out research and development activities, including research agreements specified in:
- Except those companies that directly or indirectly control the company, are thereby controlled or controlled by the same company that controls the company;
- With universities or research organizations and equivalent organizations aimed at creating and improving protected intangibles.
This provision again proposes the existing provisions in paragraphs 41 and 42-p of the 2015 Stability Act (Law 190/2014) with reference to the patent box.
To learn more, download the eBook New “patent box”: from income tax deductions to “super deductions” for research and development costs
4) Patent Box: Increase in notice
The new regime, The government statement stated explicitly. Aims to make the benefits easily accessible. So it was established (paragraph 6) Possibilities to benefit from greater deductions of expenses for tax purposes, by filling out appropriate documentation with the information needed to determine the increase.
Basically, with the new version of the grant terms, the benefits can be independently dissolved by postponing the discussion with the financial management to the next control level.
It was proposed that the only rule applicable on an optional basis to the previous patent box would be the option of direct declaration as an alternative to the judgment, i.e. prior approval by the Revenue Agency.
In order to guarantee the operators, then It is assumed that if the increase is corrected, permission for treasonous declaration will be granted (According to Article 1, paragraph 2 of Assembly Order 471/1997, the difference between ninety to one hundred and eighty per cent higher tax payable or used credit) Does not apply if you provide relevant documentation that allows taxpayers to verify the correct determination of the increase during access, inspection, verification, or other preliminary action. Documents in this case should be prepared on the basis of the arrangement of the Director of Revenue.
The taxpayer who has the required documents should inform the tax administration on the income related to the tax period for which he will benefit from the facility. In the absence of communication, if there is proof of possession of the relevant documents, the penalty for treason notice will apply if there is an adjustment in the increase. As predicted in paragraph 7, it will be the arrangement of the Director of Revenue that dictates all the practical rules of the new rules. These are anyway (Paragraph 8) Yes Apply for options effective October 22, I.e. from the day the order came into force.
It should be emphasized that the provision of paragraph 9 established The incompatibility of the new regime with tax credit for research and development was eliminated by the Budget Act 2022.
The “2022 Budget Act” has actually repealed Article 9 of Art. Law Order 6 of 146/2021 prevents the accumulation of new incentives by using tax credit for research and development activities referred to in paragraphs 198 to 206 of Art. Act 1 27 December 2019, n. 160.
For a complete overview of line messages, we recommend the ebook Comment on Tax and Labor Order
To learn more, download the eBook New “patent box”: from income tax deductions to “super deductions” for research and development costs
5) Option for patent box already made: Excluded cases
In paragraph 10 the previous rules relating to the patent box are repealed (paragraphs 37 to 45, Art. 190/2019 Art.1 and Art. 34/2019 of the Legislative Order.4). However, the law allows taxpayers who have already used the option of a regime that was abolished on an earlier date to choose whether to maintain the old regime or join the new regime.. In essence, the law does not require taxpayers who use the old regime to switch to the new regime immediately.
Also in this case, it is necessary to activate the option after the pre-dispatch sent according to the procedures established by the Director of Revenue.
The same option can be applied to subjects who have submitted an application for access to governing procedure for the purposes of the patent box or for an application to renew the terms of an already signed agreement. But those who have not yet signed the relevant agreement.
To do this, it is necessary to express a desire to renounce the pre-contract or renewal procedure, in accordance with the procedures established by the Director of the Revenue Agency.
On the other hand, taxpayers who submit an application for access to judgment are exempt from the option, Or renewal, And have already signed a pre-agreement with the Revenue Agency.
Those who join the preferred self-dissolution regime of the patent box are also excluded.
To learn more, download the eBook New “patent box”: from income tax deductions to “super deductions” for research and development costs
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