Recent years have seen significant enhancements in this IP regime as Ireland seeks to position itself as a center of excellence in innovation, research and development. Changes include an exemption from stamp duty on the transfer of IP, improvements to the R&D tax credit and the introduction of a new relief for capital expenditure in intangible assets.
As Ireland’s IP tax offering evolves this creates opportunities for companies making investment in IP and also for companies that made such investment in previous years. There are a number of planning points that are of interest to companies with investment in IP and companies considering future investment. They are:
- Properly structured relief can be claimed for costs incurred before 7 May 2009 in acquiring or internally developing brand names, trademarks, registered designs, copyrights and other intellectual assets. Previously investment in these assets did not qualify for tax relief and relief may be unlocked by restructuring a business,
- It is possible to significantly reduce the cost of investment in IP by structuring that investment to access R&D tax credit relief rather than wear and tear relief, under the intangible asset regime,
- There is a narrow window for companies to claim 100% relief for the cost of acquiring or developing know-how. When this closes relief will be available but spread over a number of years,
- A review of ancillary and supporting activities will often result in an enhanced claim and entitlement to R&D tax credit relief.
For more details on Ireland's IP tax regime and tax planning issues see our publication Managing Investment in Intellectual Property in a Changing Tax Environment
