Patent income definition

Patent income means as well the income stricto sensu notably derived from the granting of licences, as the income which would have been received from a third party by the company having exploited patents on its own behalf. The income must be assessed on the basis of the remuneration which would have been agreed between independent companies.

Examples of Patent income in a sentence

• Income Statement Items (cont'd) Business FY Ended December 31, --------------------------------------------------------- Plan Date 1998 1999 2000 2001 2002 2003 Comments --------- --------------------------------------------------------- ----------------------- Royalty Income (now valued separately) 6/26 $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 1.9 6/26 reduces Tuner 4/16 31.4 29.0 29.0 29.0 29.0 NA Patent income by ------ ------ ------ ------ ------ $1.00MM, values it Difference (6/26 vs.

• Unique tax features for R & D 1/ Patent income deductionWhat is it ?Deduction of 80% of the income from patents from the taxable basis, resulting in an effective tax rate of maximum 6,8% on this income Who can benefit ?Belgian companies and Belgian establishments of foreigncompanies3.

• Unique tax features for R & D 1/ Patent income deduction Example Patent income: 100Deduction: ( 80)Taxable basis: 20Corporate Tax(33,99%)(6,8)Net income after tax: 93,2 Effective Tax rate: 6,8 %3.

• Unique tax features for R & D 1/ Patent income deductionPatents concerned self-developed or co-developed by a Belgian company or branch; acquired by a Belgian company or branch provided they are being further developed in Belgium or abroad (by acquisition, or license,…) Large companies must have in-house R&D activities in a R&D center that qualifies as branch of activity As of 1 January 2013 SME’s are exempted from the R&Dcenter requirement3.

• Patent income received by a company resident in Ireland and not also resident elsewhere in relation to a patent in respect of which the work leading to the underlying invention (apart from incidental activities) was carried out in Ireland is exempt; the income must be payable either by a non-connected person or by a connected person engaged in manufacturing (as defined) and in the latter case, the exemption will not apply to any income paid in excess of a commercial rate (Sec.

• The speakers on Pay roll tax incentives, Mr Günther Boeyens of Deloitte; Patent income deduction, Mr Philippe Rens and Mr Pieter Van Den Broecke of Linklaters LLP; R & D Investment Deduction, Mr Thierry Vanwelkenhuyzen of PricewaterhouseCoopers, informed the participants in a very thorough manner with a dynamic interactive Q & A session.

• The adverse impact was partly offset by the increased benefit of intellectual property incentives such as the UK Patent box and Belgian Patent income deduction regimes.

• Patent income for the Labs increased 19% as compared with FY03, while copyright income increased by 8% (Exhibit 30).

• Unique tax features for R & D 1/ Patent income deduction Example Patent income: 100Deduction: ( 80)Taxable basis: 20Corporate Tax(33,99%)(6,8)Net income after tax: 93,2🡺 Effective Tax rate: 6,8 %3.

• Unique tax features for R & D 1/ Patent income deductionPatents concerned▪ self-developed or co-developed by a Belgian company or branch;▪ acquired by a Belgian company or branch provided they are being further developed in Belgium or abroad (by acquisition, or license,…)▪ Large companies must have in-house R&D activities in a R&D center that qualifies as branch of activity▪ As of 1 January 2013 SME’s are exempted from the R&Dcenter requirement3.