Announced a few years back, the Patent Box Regime was finally introduced at the end of 2016 and will favor Italian companies registering trademarks, industrial designs, models and even know-how with the Intellectual Property Office. Under the regime, both Italian and foreign companies registering intellectual property will benefit from an advantageous tax bonus. If you are interested in opening a company and need assistance, our Italian company formation consultants can provide it to you.
Many European countries encourage the development of new technology and offer enhanced intellectual property protection due to the high value innovation brings to their economy. Italy is no exception and that is why in 2015 it enabled its first Patent Box Regime which provides for a favorable tax regime applied to companies and individuals registering trademarks, models, industrial designs, know-how and brands in Italy. Software protected by copyrights is also deemed as qualifiable for the regime.
Under the regime, Italian companies will benefit from tax bonuses for a period of five years. The bonus is granted as an exemption from the corporate and the regional taxes. The exemption would be granted for the activities related to the exploitation of the intellectual property rights, referred to as intangible assets, or from the licensing of those rights. Royalties are also included in the Patent Box Regime.
Apart from Italian companies and citizens, other organizations are welcomed to benefit from the tax rebates under the regime, but most of all, the Patent Box is opened to foreign companies and individuals carrying out activities in Italy. Foreign companies operating through permanent establishments, such as branch offices, are also favored if their home country has a double taxation agreement with Italy. Given the large number of countries Italy signed double tax treaties with, there are many foreign taxpayers who can benefit from the exemptions.
There are already 4 companies in the telecom, chemistry, fashion and energy which have signed an agreement with the Italian Revenue Agency in order to benefit from the tax exemptions under the regime.
For full information on the legislation related to intellectual property protection, please contact our company registration agents in Italy.