Finance ‘open-minded’ on knowledge box taxes

The Department of Finance is understood to be “open-minded” over what rate should be applied to its proposed ‘knowledge box’ tax regime for patents and intellectual property assets developed here.

The department yesterday formally launched its planned consultation process for the programme, which was announced in October’s Budget. There has been speculation that the viability of a 6.25% tax rate was being examined by officials.

However, the department said outside opinions will be sought on the rate. It also suggested that, apart from the tax rate itself, issues such as efficiency, a lack of administrative burden, and how the regime best meets the needs of domestic firms and multinationals will have equal bearing on competitiveness levels.