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Home Publications Intellectual Property Box regimes: effective tax rates and tax policy considerations

Intellectual Property Box regimes: effective tax rates and tax policy considerations

Lisa Evers, Helen Miller and Christoph Spengel
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We provide a comprehensive and systematic overview of the Intellectual Property (IP) Box regimes in place in Europe. We address several aspects of the design of IP Boxes in detail which to date have received little attention, in particular the treatment of expenses related to qualifying income. Second, we incorporate IP Box regimes into effective tax rate measures for investment in a self-developed patent. In doing so, we are able to incorporate features of the tax base, including the treatment of R&D expenses. Third, we discuss IP Box policies' design features and the incentives they create.

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Journal article | International Tax and Public Finance
In 2014, 12 European countries are operating Intellectual Property (IP) Box regimes that provide substantially reduced rates of corporate tax for income derived from important forms of intellectual property. We describe the key features of the policies and incorporate them into forward-looking ...
Observation
The EU Commission has opined that the UK’s Patent Box policy breaches the code of conduct for business taxation. There are concerns over whether the design of the policy is open to abuse, or will provide differential treatment for economically similar companies.