A patently obvious mistake?
26.04.2007 - In recent weeks the Irish Government made a change to its patent tax law that some have speculated could move high-value jobs out of the State. Last month, the European Commission formally requested that Ireland remove a provision in its patent tax law by which royalties on patents are exempt from tax only if research leading to the patent was carried out in Ireland. The provision was incompatible with the freedom of establishment and the free movement of services allowed for under EU laws, the commission said.
Some weeks prior to the commission’s request, however, the Irish Government had already amended the law in the 2007 Finance Bill.
Consequently, from next January the definition of a qualifying patent for the Patent Royalty Tax Exemption scheme will change so as to provide that work leading to a patented invention can be carried out within a state of the European Economic Area (EEA) rather than just in Ireland. Also, a limit of €5m will also be imposed on the aggregate amount of patent income to be exempt for tax purposes.
The rest on - http://www.siliconrepublic.com/news/news.nv?storyid=single%208217
- although this is a way of protecting high-tech stuff, it seems to me that similar moves could be made to 'protect' patentees??? -
Bye, Barry