To qualify for this generous incentive, the company must earn income from the qualifying asset, which it must have created from qualifying Research and Development (R&D) activities. Examples of qualifying assets include:
Knowledge Development Box Explained – Ireland
The Knowledge Development Box (KDB) is a government incentive that enables companies to obtain corporation tax relief on income from qualifying assets. A company qualifying for KDB may be entitled to a deduction equal to 50% of its qualifying profits, meaning that the qualifying profits may be taxed at an effective rate of 6.25%.
The legislation is relatively new (it was introduced in 2015) and is very complex so advanced planning is essential to achieve the maximum benefit available.
We can advise you on this.