Taxes Consolidation Act 1997 section 759

Spreading of revenue payments over several years

Section 759 allows a person who receives a patent royalty or lump sum covering a usage period of two or more complete years to have the resulting tax liability recalculated as if the payment had been spread backwards in equal annual instalments.

• Where a royalty or lump sum is received for patent use extending over six or more complete years, the recipient may elect to have tax calculated as if the payment had been received in six equal annual instalments ending on the actual date of payment.
• Where the patent usage period is two or more complete years but less than six, the same spreading treatment applies but the number of instalments equals the number of complete years in the usage period.
• The spreading relief does not apply to lump sums paid to non-residents in respect of Irish patent rights under section 757, which has its own separate spreading provisions.
• References to tax payable by a person include, where joint assessment applies, tax payable by that person's spouse or civil partner.