Patrick McColgan, Andrew Cousins and Stean Hainsworth Published in Bloomberg BNA’s Transfer Pricing Forum

Patent Boxes and Related R&D Benefits or Issues

Patrick McColgan, a managing director, Andrew Cousins, a director, and Stean Hainsworth, a director in Duff & Phelps' global Transfer Pricing practice, provide U.S., UK and Australia perspectives regarding patent boxes and related R&D benefits or issues.

Read the full article 

In the July 2018 issue of Bloomberg BNA’s Transfer Pricing Forum, the topic on the current state of Patent Boxes around the world and the implications it has on transfer pricing strategies included commentary on the following:

  1. Does your country have a Patent Box regime (or a functionally equivalent preferential IP regime) or is a proposal for one under consideration?
    • What benefits does it offer (e.g., partial exemption or reduced tax rate)?
    • What are the terms of the regime (e.g., definition of intangible property, definition of intangible income, definition of qualifying expenditures, treatment of R&D outsourcing, treatment of acquired IP or acquisition costs, grandfathering provisions for expiring regimes, administrative/compliance requirements, etc.)?
  2. Assume that a Country A parent company owns an IP affiliate eligible for the patent box regime in Country B. What Country A issues arise from this situation (e.g., CFC legislation, taxation of dividends from the patent box, etc.)
  3. Assume that a parent company owns an operating subsidiary in Country A and an IP affiliate eligible for the patent box regime in Country B. What are the Country A issues if royalties (or other payments) are paid from Country A to the IP affiliate in Country B? What is the impact if the IP affiliate does not meet the OECD modified nexus approach?
  4. What other R&D tax incentives or benefits does your country offer to attract investment in R&D, e.g., credits, super-deductions, grants, tax holidays, etc.?
    • What are the requirements to be eligible for this tax relief (e.g., revenue thresholds, definition of intangible property, definition of qualifying expenditures, treatment of R&D outsourcing, treatment of acquired IP or acquisition costs, carry-overs, administrative/compliance requirements, etc.)?
    • Can these incentives be combined with benefits received from a patent box regime (if available) or other incentives?
2018-07-18T00:00:00.0000000 0001-01-01T00:00:00.0000000 /about-us/news/bloomberg-bna-transfer-pricing-forum-july-2018-issue news {B062D54C-1425-4A04-8F9F-95EA14068E6D} {4C8AF8F6-BAEC-4E94-ACC7-7AC0F36685FC}

Related Services

Duff & Phelps Valuation Advisory Services

Valuation Advisory

Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.

Valuation Advisory
Duff & Phelps Valuation Advisory Services

Transfer Pricing

Comprehensive transfer pricing advisory covering compliance, planning, controversy and implementation.

Transfer Pricing

Case Studies

Insights

News

Events