Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Over a number of years, a number of European countries have had patent boxes, which were designed so that intellectual property would be attracted to the countries that had such patent boxes. Patent boxes became controversial and there were discussions within Europe and driven by the OECD to abolish patent boxes completely. Two years ago, I would have said that I did not foresee these being replaced by anything else. Opinion in the OECD and within Europe has come to a point where the specific encouragement of research and development through something analogous to patent boxes is deemed to be appropriate in the tax portfolios of countries. Quite restrictive definitions are being developed. Talks are ongoing at OECD and European level but we now know that the principle of patent or knowledge boxes has been accepted and the parameters are being negotiated actively. I have not decided on the appropriate rate and any innovation we introduce will apply to indigenous companies as well as foreign direct investment companies.

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