The Changing Landscape for IP Regimes Around the World

    View Authors December 2015

    Patent Boxes, Innovation Boxes, Intangible Property Boxes, Knowledge Development Boxes (IP Regimes) – countries may use different names, but all of these regimes are designed to allow a preferential rate of tax to be applied to income generated from intangible property (IP).

    There are a number of these regimes in place around the world, many in Organisation for Economic Co-operation and Development (OECD) member countries.

    In the past, the OECD reviewed its member countries’ regimes and determined that they met the then existing standards for preferential tax regimes. In light of the recent OECD Base Erosion and Profit Shifting (BEPS) project, specifically Action 5 which recommends a “modified nexus approach” for IP Regimes, countries may need to assess their current offerings to determine whether their regimes continue to comply with the OECD’s recommendations.