On the 6 February, 2018 the Italian Ministry of Economic Development and Ministry of Economy and Finance published its Official Gazette on the new patent box regime.
The regulation explains the criteria for qualified tax payers, qualified IP, qualifying R&D, Trademarks and details out how to calculate the patent box income and tax ruling for that. The Patent Box regime allows a 50% exemption from corporate income tax and regional tax on income derived from the direct exploitation, licensing or disposal of qualifying intellectual property (IP).The exemption also applies to gains arising from the sale of qualifying IP that are not included in taxable income.
The Patent Box regime initially included trademarks. But as OECD expressly excluded trademarks from the list of eligible intangible asset, such provision conflicts with OECD’s commonly adopted standards. So trademarks have been finally removed from the list of qualifying intangibles by the new Regulation. Rather the regulation introduced the “grandfathering” clause in case of trademarks and the provision will be valid for five fiscal years, and shall not in any case exceed 30 June 2021. Such option is non-renewable
