UK and Germany reach agreement over ‘patent box’ corporate tax incentive has been saved
UK and Germany reach agreement over ‘patent box’ corporate tax incentive
11 November 2014
Bill Dodwell, Head of Tax Policy at Deloitte, comments: “We welcome the outline agreement between UK and Germany on the future role for a ‘patent box’ corporate tax incentive. The agreement will of course need to be endorsed by other members of the G20 and OECD before it can be adopted. It also seems that detailed rules on tracking and tracing research and development costs will need to be agreed, as well as details on how existing regimes are moved into the new approach. Focussing tax incentives on patents and equivalents may mean the withdrawal of some of the wider intangibles regimes adopted by other countries.
“Patent Boxes have always been about incentivising the commercialisation of innovation, whereas R&D expenditure credits support the initial R&D. The UK has a good research record but a less strong commercialisation record – so we are pleased that this support can continue.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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