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IP Box

The IP Box is a tax relief scheme that offers a reduced corporate tax rateon profits derived from qualifying intellectual property, such as patents and copyright. It aims to encourage innovation and research by rewarding companies that invest in the development of new technologies and solutions.

What is the IP Box?

IP Box (or Patent Box) is a term for low preferential rates applied to income generated from patents, intellectual assets or intellectual property rights. Following its redesign in 2019, it has been extended to creative software solutions. Unlike the RTC and ITC, which are considered initial incentives (when companies incur expenditure), the IP Box is a final incentive (when revenue is generated). In practical terms, the IP Box allows companies to benefit from a corporate tax rate of 10% instead of 25% on income from these assets sold/assigned/sub-licensed of patented R&D.

How can I benefit from the preferential IP Box rate?

The IP Box is an opt-in scheme. Application of the scheme is subject to compliance with certain reporting obligations by companies exercising the option.

  • Provision of an appendix attached to the income tax return
  • Supply of a supporting file describing the R&D work involved in the design of each asset, the R&D expenditure used to calculate net income and the Nexus ratio, etc.

What our offer includes

1_ Identification

Analysis of assets or family of assets eligible for the scheme.

2_ Assessment

Analysis of the eligibility of income derived from these assets or family of assets.

3_ Financial analysis

Calculation of R&D expenditure to be used to calculate net income, and of the "Nexus" ratio.

4_ Drafting

Compilation of the technical file supporting the application.