Taxes Consolidation Act 1997 section 769R

Companies with income arising from intellectual property of less than €7,500,000

Section 769R extends knowledge development box (KDB) relief to smaller companies whose intellectual property is not protected by a patent, provided they meet certain size and income thresholds.

• Companies with average overall income from intellectual property not exceeding €7,500,000, group turnover not exceeding €50,000,000, and qualifying as a micro, small or medium-sized enterprise under EU rules may access an expanded definition of intellectual property for KDB purposes.
• For qualifying companies, the definition of intellectual property is broadened to include inventions certified by the Controller of Patents, Designs and Trade Marks as novel, non-obvious and useful — a wider category than the patent-based definition applying to larger companies.
• Overall income from intellectual property includes royalties, licence fees, insurance proceeds, damages or compensation, and sales proceeds (net of VAT and duty) attributable on a just and reasonable basis to a qualifying asset.
• A company claiming relief under this section must maintain records sufficient to demonstrate that it meets the qualifying conditions, in accordance with the documentation requirements of section 769L.