Exploiting & Protecting IP in Ireland

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1 Exploiting & Protecting IP in Ireland

2 Intellectual Property Framework in Ireland Ireland is a favourable and popular location for holding and exploiting Intellectual Property ( IP ) due to its beneficial IP regime, which facilitates the application of the 12.5% corporate tax rate to profits from the exploitation of IP in Ireland. In addition, capital allowances are available for capital expenditure incurred on the creation and acquisition of specified intangible assets, including the acquisition of IP. The Knowledge Development Box ( KDB ) introduced by Ireland and effective from 1 January 2016 was the first such KDB (or Patent Box as it is known in other jurisdictions) to comply with the OECD s modified nexus standards as set out in the final reports of the OECD s BEPS Project. PATENTS TRADE MARKS PASSING OFF COPYRIGHT DESIGNS CONFIDENTIAL INFORMATION SPECIALISED COURT FOR IP ENFORCEMENT Within Ireland s robust, mature and sophisticated legal framework all categories of IP can be protected, enforced and commercially exploited.

3 Advantages For IP Management Structures There are several advantages from a tax perspective to locating IP in Ireland: Low Corporate Rate for Trading Companies of 12.5% on trading income including income from the management, development and exploitation of IP in Ireland. Employee Incentives allow companies to reward key employees with a portion of the company s R&D tax credits, thereby reducing the employee s income tax liability. IP Capital Allowances Regime makes Ireland an attractive IP base. R&D Credit system for qualifying R&D expenditure. Special Assignee Relief Programme SARP is a tax initiative designed to encourage the relocation of key talent within organisations to Ireland. Knowledge Development Box The KDB was introduced from 1 January 2016 offering an effective tax rate of 6.25% on qualifying profits.

4 Other Advantages Irish withholding tax exemption on dividend and interest payments to EU member states and tax treaty countries Extensive Treaty Network covering all the major world economies and on a par with any other holding company jurisdiction Stamp duty exemption on transfers of IP No CFC or thin capitalisation rules Limited transfer pricing rules

5 Why William Fry William Fry is one of the leading law firms in Ireland. At William Fry we provide a comprehensive range of legal and taxation services to both Irish and international clients. William Fry boasts Ireland s leading Intellectual Property Group with dedicated Intellectual Property lawyers dealing on a full time basis with contentious and noncontentious cases for clients. The Intellectual Property team prides itself on its expertise and experience. The Firm s commitment to Intellectual Property as a core practice area is recognised internationally, with William Fry being consistently ranked as Ireland s premier law firm in the area. William Fry Advisors is the correspondent tax practice of William Fry. William Fry Advisors is a full service tax practice with over 20 tax professionals to help with all Irish tax requirements. It is the Irish office of and, a global firm of tax advisors represented in nearly 50 countries worldwide. Together the William Fry Intellectual Property Group and William Fry Advisors have successfully advised a range of international clients regarding tax efficient structuring of significant IP portfolios.

6 Our Partners Martin Phelan T: E: martin.phelan@williamfry.com David Cullen Intellectual Property T: E: david.cullen@williamfry.com Sonya Manzor T: E: sonya.manzor@williamfry.com Leo Moore Intellectual Property T: E: leo.moore@williamfry.com Carol Plunkett Litigation T: E: carol.plunkett@williamfry.com Laura Scott Litigation T: E: laura.scott@williamfry.com Shane Wallace T: E: shane.wallace@williamfry.com Cliona Donnelly T: E: cliona.donnelly@williamfry.com Brian Duffy T: E: brian.duffy@williamfry.com

7 What Our Clients Say The firm is very responsive and has great resources, including access to a global network of tax advisers, which benefits us internationally and is a fantastic asset. (Chambers Europe, 2016) The firm s ability to provide both legal and tax advice really ensures everything fits together. (Chambers Europe, 2016) The proactive team at William Fry is preeminent in the technology and pharmaceuticals sphere. (Legal 500 EMEA, 2016)

8 DUBLIN LONDON NEW YORK SAN FRANCISCO SILICON VALLEY T williamfry.com William Fry. All rights reserved. (EPI0217)