Germany and UK tackle ‘patent box’ tax rules

Germany and Britain will seek other countries’ backing for a deal to ensure that tax breaks on profits generated from patented research apply only in the country where the research and innovation takes place.

Firms have been keen to relocate some units to take advantage of “patent box” tax breaks.

“Just because something is legal, does not mean it is fair in tax terms,” said German Finance Minister Wolfgang Schäuble.