After the guidelines issued in April’s Italian Legislative Decree, the Ministry for Economic Development and the Ministry of Finance have published their latest indications regarding this new tax relief plan.

Eligible IP RIGHTS
The exemptions can be applied to revenue resulting from:
• patents for inventions and utility models, granted or pending;
• trade and service marks, registered or pending registration;
• designs and models, registered and not;
• copyright, only if relative to software or industrial secrets protectable by law.

Eligible REVENUE
The taxable base to which relief can apply is calculated on the revenue generated by exploiting the intangible assets (IP earnings) taking into account qualified costs for Research & Development sustained by the applicant.

IP REVENUE
For cases of direct exploitation (sale of the product associated with an intangible asset), a specific ruling by the Italian Revenue Agency is required in order to determine the IP revenue.

Qualified COSTS
• Basic research – Experimental or theoretical work;
• Applied research;
• Design – Drawing and engineering of products;
• Software;
• Market research;
• Marketing – Presentation/communication/promotion;
• Intellectual Property costs.

WHEN
Patent Box is now in effect, and companies who sign up for the optional tax regime will start benefiting from the tax breaks in the next fiscal year. The programme lasts for five years and can be renewed.
In order to conform with European directives, it is likely that anyone who has not signed up to the regime by June 2016 will no longer be able to do so using trademarks and designs as grant-eligible rights.
Our expert professionals can help you plan the best strategy for your company, in order to reap the fullest benefits from this new opportunity.

For this specific project, we have decided to partner with the Studio Baldi Accounting and Law Firm (based in Reggio Emilia, Milan and Rome) in order to offer companies a “one-stop shop” to easily and effectively manage all the different aspects related to the new Patent Box programme.