IRELAND: KNOWLEDGE DEVELOPMENT BOX; DETAILS EXPECTED IN 2016 BUDGET
Ireland’s budget 2016 will be announced tomorrow, 13 October 2015, and it is expected that additional detail on the research and development (R&D) tax incentive known as the “knowledge development box” would be provided in the budget 2016 statement.
The “knowledge development box” is a tax rate for income generated from R&D and intellectual property and is expected to be set in the region of 5% and 6.25%.
The initial announcement of the knowledge development box came after the closure of the “double Irish” tax loophole, and it is anticipated that the knowledge development box would be an attempt to keep Ireland’s tax system as competitive as possible. However, other European countries (including Germany) have warned that these incentives are to be used only as a reward for R&D investment and not as a tax avoidance tool.
Read an October 2015 report prepared by the KPMG member firm in Ireland:Budget 2016: Do you know what the knowledge box is?
