The Patent Box regime considers, for the determination of the taxable profit, only 0,15 of the difference between the value of the income deriving from the transfer or temporary use of copyrights and industrial property rights when registered and the expenses or losses borne, in the same tax year, by the taxpayer, for the implementation of research and development activities related with the right generating the income in question.
The deduction from taxable profit is limited by the following formula: DQ / DT x RT x 85 % where:
The deduction from taxable profit is limited by the following formula: DQ / DT x RT x 85 % where:
- DQ = Eligible costs incurred to develop the protected asset;
- DT = Total costs incurred to develop the protected asset;
- RT = Total income derived from the asset.
Only expenses or losses borne that are directly related to research and development activities, as defined in article 36 of the Tax Investment Code (CFI), are considered.
The total amount of eligible expenses for developing the protected asset is increased by 30%, up to the amount of total expenses incurred to develop the asset.
Requirements
- The transferee uses the rights in the pursuit of a commercial, industrial or agricultural activity;
- The use of the rights by the transferee cannot give rise to the delivery of goods or provision of services that lead to tax deductible expenses for the transferor, or for a company in the same group to which the special RETGS regime applies, whenever a special relationship exists between one of them and the transferee, in accordance with no. 4 of article 63 of the Corporate Income Tax (IRC) Code;
- The transferee is not an entity resident in a country, territory or region with a clearly more favourable tax regime;
- The entity benefiting from the incentive keeps accounting records organized in such a way that the income can be clearly distinguished from the others, including the identification of the expenses and losses borne for the realization of the relevant research and development of activities related with the transfer or temporary use of the right.