McCreevyIptax03En

McCreevy reinforces tax privileges for patents in Ireland

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During his tenure as finance minister of Ireland, Charlie McCreevy further strengthened the tax exemptions which have turned Ireland into a tax haven for patent revenues in the European Union. In particular, transfer of IP rights was made tax-free. While the tax exemption policies were labelled as measures designed to foster R&D investment in Ireland, it is clear from the figures that Ireland is mainly being used as a hub for international transfers. We have here collected some facts which need to be analysed further.

2004-02-04 Stamp Duty Exemption for IP Transfers

http://www.auril.org.uk/webpages/LES%20News%20Mar%2004.doc

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  1. Finance Bill 2004 - Stamp Duty Exemption for
    • Intellectual Property Transfers

    On 4 February 2004, Minister McCreevy published the Finance Bill, 2004. As was anticipated in the Budget, the Finance Bill currently includes an exemption from stamp duty on transfers of intellectual property, and it provides that the exemption will apply where a transfer of intellectual property involves one of the following: (a) any invention, patent, supplementary protection

    • certificate, trade mark, domain name, registered design, copyright (and related rights) or design right,
    (b) any plant breeders' rights under the Plant Varieties
    • (Proprietary Rights) Act 1980,
    (c) any application for the grant or registration of
    • anything within paragraph (a) or (b),
    (d) any licence or other right in respect of anything
    • within paragraph (a), (b) or (c),
    (e) any rights under the law of a country, territory,
    • Stateor area outside the State, that correspond or are similar to those within paragraph (a), (b), (c) or (d),and
    (f) goodwill, to the extent that it is inherent in
    • anything within paragraph (a), (b), (c), (d) or (e).
    LES had made submissions to the Minister in respect of the desirability of removing the charge to stamp duty to IP transfer, and welcomes the imminent amendments to the law. LES has also made submissions to the department as to the nature and scope of the exemption framed in the Bill.

McCreevy signs of IP pricing policies

Here he signs off on a couple of pricing policies for exclusive rights. Could be significant policy, but I didn't read it.

http://www.irishstatutebook.ie/ZZSI433Y1997.html

http://www.irishstatutebook.ie/ZZSI403Y1999.html

This is another rule, by McCreevy himself, eliminating some sorta tax on interest and royalties.

http://www.finance.gov.ie/Viewtxt.asp?fn=/documents/Publications/legi/si72103.htm&StartDate=1+January+2004

McCreevy Abolishes Stamp Duty On Intellectual Property Transfers

http://www.tax-news.com/asp/story/story.asp?storyname=14322

R&D Tax Credit comes into effect

Is the R&D tax credit spoken of at the following link significant?

http://www.arthurcox.com/dynamic/publications/Techbrief%20-%20Technology%20Group%20bulletin,%20June-July%202004.pdf

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Figures from Irish Patent Office

Above that is the following interesting passage:

McCreevy Brings New R&D Tax Credit Into Force

http://www.tax-news.com/asp/story/story.asp?storyname=16649

McCreevy at symbolic welcoming ceremony for new "IP enterprise"

http://www.idaireland.com/news/Business%20Ireland%20HTML/BusinessIre_win03/

Lots of puff pieces on this page about "IP" enterprises, including a picture of Mr. McCreevy welcoming one new venture. Plus the following interesting passages:

Sharp increase in FDI for Ireland

unit: bn usd

FDI INFLOWS

2002

2003

European Union

374.4

341.8

Ireland

19

41.7

France

51.5

36.4

Germany

38

36.3

Luxembourg

125.7

103.9

Netherlands

29.2

30.5

United Kingdom

24.9

23.9

Australia

14

10

Canada

20.6

11.1

Japan

9.3

7.5

Switzerland

9.3

0.4

United States

30

86.6

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