Patent royalty tax exemption axed
Sir, – I refer to Fiona Reddan’s article “Ireland needs to do more to protect IP base” (Business+Innovation, June 18th). While the article makes many valid points, it does however, contain an error.
The tax exemption for patent royalty income and related distributions was abolished in Budget 2011 with effect from November 24th, 2010. The Commission on Taxation was of the view that the exemption was not an effective measure in incentivising companies to engage in research and development activities in Ireland and that it had been used as a tax-efficient means of remunerating employees and directors.
It’s a pity to have such a “patently” wrong statement in an otherwise worthwhile piece. – Yours, etc,