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.