The IP Box taxation regime
Benefit from a simplified tax regime for your intellectual property.
Your needs
You are a company established in France seeking to benefit from a preferential rate of 10% corporation tax on profits arising from exploitation or sale of some intellectual property rights. In line with the “nexus approach” specifically set up by the OECD, reduced rate taxation is conditional upon there being a direct link between income from industrial property falling within the scheme and R&D costs contributing to this income. In other words, in order to benefit from the IP Box regime, your company needs to have incurred R&D costs in developing this asset whether directly or indirectly.
In opting for this favourable regime, the company is subject to declarative and documentary obligations comprising:
- A description of how the R&D activity originating eligible income is organised,
- Specific information relating to eligible intellectual property assets, calculation of taxable income at reduced rate and the method of allocating costs between assets,
- Formulation of an option in declaring results for the financial year for which it is exercised and details of the calculation made in determining the profit for each asset.
What we can offer you
Assistance in:
- Identifying income and costs which are eligible under this regime,
- Calculating net profit and the “’nexus” ratio for each asset,
- Drawing up documentation in support of profits under this regime.
Our key advantages
We provide you with:
- Our expertise based on years of experience in supporting innovative companies,
- The skills of our multidisciplinary international team (qualified accountants, taxation and legal experts, HR consultants),
- Technical support by our fellow members of Allinial Global, present in more than 130 countries.
