El Patent Box was introduced in Spain in 2008 and is still little known among Spanish companies, however, more and more companies are betting. Patent box has undergone modifications since 2008, the most recent being Law 06/2018 on the state's General Budgets for 2018.Patent Box allows for a 60% reduction in income to be incorporated into the tax base derived from the transfer or exploitation of:
-Plans, formulas or secret procedures -Patents, drawings or models -Rights to information relating to industrial, commercial or scientific experiences, the so-called Know-how.
To benefit from Patent Box, a number of conditions are required:
-That the entity that transfers the assets has created them (at least 25%) -That the person who transfers the assets makes use of the rights of exploitation or use in the development of an economic activity-Have a transfer contract. -Have the accounting records.
What are the advantages of the Patent Box?
-Lowering the tax base by 60% is possible- The incentive can apply to any type of company- It can be combined with other grants and with tax deductions for R+D+I- The incentive can be used regardless of the date of creation of the intangible-In companies of the same group it is applicable-It is independent of the company's tax base. -It promotes the internationalization of companies. -It can be applied with negative tax bases.
If you want to know more about tax incentives, be up to date on our blog. Do you have any more questions?
