Section 759 Spreading of revenue payments over several years

subscription or 30 day access with no obligation

(1) In this section, any reference to the tax payable by a person includes, in cases where the income of an individual's spouse is deemed to be the income of the individual, references to the income tax payable by the individual's spouse.

In this section, does tax payable by me include tax of my spouse?

(1) In this section, tax payable by you as someone who is jointly assessed to tax includes tax payable by your spouse.

(2) Where a royalty or other sum to which section 237 or 238 applies is paid in respect of the user of a patent and that user extended over a period of 6 complete years or more, the person receiving the payment may require that the tax payable by that person by reason of the receipt of that sum shall be reduced so as not to exceed the total amount of tax which would have been payable by that person if that royalty or sum had been paid in 6 equal instalments at yearly intervals, the last of which was paid on the date on which the payment was in fact made.

How does the spreading relief apply to me as patent owner?

(2) This relief applies to you as a patent owner where you receive a royalty or lump sum (for the use of the patent for a period longer than six years) under deduction of tax. You may request that the tax be payable as if the income were spread in eq...

to read the full commentary

(3) Subsection (2) shall apply in relation to a royalty or other sum where the period of the user is 2 complete years or more but less than 6 complete years as it applies to the royalties and sums mentioned in that subsection, but with the substitution for the reference to 6 equal instalments of a reference to so many equal instalments as there are complete years comprised in that period.

What rules apply where the patent usage period is longer than two years but less than six?

(3) Where the patent usage period is longer than two complete years but less than six complete years, the income may also be treated as spread backwards for a period equivalent to the number of complete years in the usage period.

(4) Nothing in this section shall apply to any sum to which section 238 applies by virtue of section 757.

Does this spreading relief apply where a lump sum is paid to a non-resident?

(4) The spreading relief of this section does not apply where a lump sum is paid to a non-resident in respect of Irish patent rights (section 757) as that situation has its own spreading relief.