Knowledge Development Box (KDB)
What is it?
When companies in Ireland are carrying out qualifying R&D and create IP (qualifying asset), a tax relief can be claimed on income relating to the IP. The tax relief is a deduction equal to 50% of their qualifying profits. This 50% reduction translates into an effective rate of 6.25% (half of standard 12.50%). Assets qualifying or IP for KDB must be generated from R&D activities, with R&D expenditure similar to that used in the R&D tax credit.
What Are Qualifying Factors?
- Qualifying profits for each qualifying asset, applies a fraction to the ‘profit of the specified trade relevant to the qualifying asset’.
- The technical criteria for the KDB R&D tax credits are linked and interdependent, because R&D has to be undertaken to generate the qualifying asset for KDB
- Qualified accounting periods are on or after January 1, 2016 and before January 1, 2021
- Businesses that are resident in Ireland and generate profits; but the profits are derived from qualifying assets based on their IP in Ireland
Explore How RDP Can Help You With Your KDB
- We have a wealth of technical and financial experience required to identify your assets that qualify for R&D and KDB
- We can identify the profits that derive from those qualifying assets
- If your company is multi-jurisdictional, we can help you with country by country reporting (cbcr)
Contact us about the KDB program
RDP has experience with Patent Box and the KDB program. Contact us for your eligibility.