KDB Can Provide New Opportunities for SMEs

board-453758Chambers Ireland has welcomed the announcement by Minister for Jobs, Enterprise & Innovation Mary Mitchell O’Connor of the publication of a bill to allow SMEs involved in research and development activities to avail of the Knowledge Development Box (KDB).

The scheme, which sees profits from Irish inventions resulting from R&D activities in Ireland taxed at 6.25 per cent, is to be made available to SMEs through a certification process overseen by the Patents Office.

The Bill, which is hoped, will be passed before the end of the year, will open up the opportunity for companies across a broad spectrum to pay lower taxes on profits from Irish-based research and development activities. This includes companies in incubation units right through to high-potential start-ups in all industry sectors once they are generating income resulting from research and development activities.

Commenting on the announcement, Ian Talbot, Chief Executive Chambers Ireland, said: “We welcome this move by Government to make it easier for Irish SMEs to avail of the Knowledge Development Box reduced tax rates on inventions or products arising from R& D activity conducted in Ireland. Too often, efforts to support investment in R&D are incompatible with the Irish SME sector due to complexity and technical nature of the schemes. This measure will encourage and reward innovation by Irish SMEs and enable them to utilise the scheme to generate additional income from their IP and R&D activities.

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“More importantly, the measure will encourage the SME community to look again at their levels of R&D and consider increasing their investment and activity. This is an absolute necessity if we are to build a high value indigenous SME sector capable of scaling up and expanding into international markets. We call on the Houses of the Oireachtas to ensure this legislation is passed before the end of the year and also call on Government to ensure the Patent Office receives the extra resources required to certify applications on a timely basis.”