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Remember the Knowledge Box Scheme introduced in 2016? No SMEs have applied for it

The Knowledge Development Box allows companies to access a lower rate of corporate tax.

Image: Shutterstock/Rainer_81

IN BUDGET 2016, the government announced the Knowledge Development Box (KDB).

The scheme was set up to allow companies to halve the corporation tax paid on income once it was generated from research and development conducted here.

The government says it included features in the KDB to specifically encourage small and medium businesses (SMEs) to make claims.

One such feature was that smaller companies may be able to claim relief on assets which are patentable, but not patented. As opposed to larger companies that may only claim relief in respect of searched and examined patents or copyrighted software.

In order to make a claim, companies need to apply to for certification that the assets are eligible. The Knowledge Development Box KDB Certification of Inventions Act was passed last year.

However, the Minister for Finance has admitted that so far no SMEs have applied for the KDB certificate.

I have been advised by the patents office that they have not received any applications to date in relation to the KDB certificate for SME’s.

“However, I would note that the KDB certificate has only been available to firms since last year, through the introduction of the KDB (Certificate of Inventions) Act 2017, and firms may yet be considering applications for the certificate. Furthermore, firms of all sizes can avail of the KDB scheme through the usual patent process.”

Minister Paschal Donohoe added that companies have a 24 month time frame available to avail of the KDB.

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“Therefore, it is anticipated that more companies will make use of this 24 month time frame.”

He said further claims in respect of the year ended 31 December 2016 may be made by September 2018.

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