Patent Box scheme
Patent Box is an optional tax scheme applicable to income originating from the use of intangible assets, such as copyrighted software, industrial patents, designs, models, and legally protectable know-how.
All businesses that carry out research and development activities and use, directly or indirectly, the said intangible assets, earning an income from this, can opt for this tax regime.
What we can do for you
Phase 1: Cost-effectiveness analysis
- We identify, select, and assess eligible intangible assets.
- We analyse revenues according to intangible assets: we identify the presence of multiple intangible assets within a single product and we analyse the possible combinations in order to optimise the structure of the product according to the Patent Box regime.
- We evaluate the research and development costs that have contributed to the development and maintenance of these assets, as well as those which have increased the value of the assets, and we assess their impact on the calculation of the benefit.
- We estimate the profit potential generated by the assets identified.
Phase 2: Activities to determine the economic contribution to the production of business income in the event of use of intangible assets
- We reconstruct the research and development costs over the three years prior to the first year in which the business opts to apply the tax relief scheme as well as those referring to the first year.
- We define an advanced implementation plan for the track and trace system.
- We determine the ratio between “eligible research and development expenses” and “total expenses incurred for the development of the intangible asset” and we analyse any intra-group transactions.
- We support and work alongside the professional appointed by your Company to determine the most appropriate method and criterion to determine the economic contribution to the production of the total income originating from the use of intangible assets. These activities will be decided directly with the appointed professional and with the Client Company.
- We draw up a technical report containing:
a) a breakdown of the intangible assets whose direct use originates in the production of the portion of income eligible for the tax relief;
b) a detailed specification of the 'complementarity' restriction (if applicable) impacting on the intangible assets stated in section a) above, if used jointly as a single intangible asset, in order to facilitate the creation of a product or process;
c) a clear description of the research and development activity carried out and of its direct connection with the development, maintenance, and increase in value of the assets stated in section a);
d) a detailed illustration of the methods and criteria for calculating the economic contribution (to the production of the business income or loss) of the assets stated above in sections a) and b), as well as the reasons why these methods and criteria were selected;
- we estimate the benefit for the year in question, with the support of the professional appointed by the Client Company;
- we monitor the implementation of the Patent Box scheme, we update the eligible intangible assets and the analysis of the estimate of the eligible income, we provide annual assistance in monitoring research and development costs and for the yearly calculation of the percentage of tax-free income;
- we provide the professional appointed by your Company with assistance during the procedure to apply for a Ruling by the Tax Authorities and in preparing the supporting documents;
- we carry out the activities relating to the ruling procedure (the agreement with the Italian inland Revenue Agency provided for by Art. 8 of Italian Decree Law n. 269 dated 30 September 2003)
Who we cater for
We cater for entities with business income, regardless of the accounting system adopted and the legal entitlement permitting use of the assets.
How we do it
By putting a team of specialists at your disposal to accompany you through the management and use of this complex incentive, and more specifically:
- a commercial consultant, who - after running an initial check on the possibility of accessing the Patent Box scheme - will coordinate subsequent activities and be responsible for your satisfaction;
- the specialists and engineers from Warrant Innovation Lab (a fully controlled Warrant Hub subsidiary), who will guide you through all the activities listed above.