Reduction in Corporate Tax on assignment of intangible assets
Does your company transfer intangible assets (such as Patents, Drawings, Models, Formulas or Know How) to other companies for the development of an economic activity?
In that case, meeting a series of requirements, it could benefit from a reduction of the tax base of 50% of corporation tax.
The Patent Box is a tax treatment that seeks to promote innovation and development among Spanish companies and has its origin in the Community Directive 2003/49 / EC, applicable in Spain since 2008.
As has been anticipated, with the Patent Box, certain companies may benefit from a 50% reduction in the corporate income tax base, in relation to the income obtained by the assignment or license to operate Patents, Drawings, Models, Formulas , Even for procedures and secret industrial information (Know How).
Regarding the other requirements, indicate that any company that is subject to Corporate Tax in Spain and that actively exploits industrial and intellectual property assets can benefit.
The operation is as follows: there is a company that creates an asset and transfers it to a ceding company, which must use it in its economic activity, as long as it is not located in a tax haven. The assignor must keep up to date all accounting records in order to determine the direct or indirect expenses of the assets subject to the assignment.
Likewise, there is a limit, by which the transferor company will not be able to opt for this incentive in the next fiscal year for the revenues that derive from the assignment, multiply by six the cost of generating the asset.
It is important to note that this incentive is fully compatible with other aids, so there is no competitive competition, so it is compatible with loans, tax deductions for R & D + I and one of its great peculiarities is that the Patent Box system can Be applied between companies of the same business group, which facilitates the creation of assignments between companies of the same group.
Finally, in conclusion, the main objectives of this measure are the attraction and promotion of intangibles in Spain as well as a real and effective transfer of knowledge and technology between companies.
Font: Abogado Freelance