Patent box concession: opportunities for agro-food companies

Calculation of the financial contribution of trademarks to business income.

Need

This family business - which specialises in the production and distribution of alcoholic beverages - has grown in recent years, managing a turnover of over €150 million and 150 employees. It owns various trademarks that, together, make up a world-renowned brand and ensure instantly recognisable products. This means the company needed the calculations and documents required for application of the optional tax scheme for income originating from the use of trademarks owned by the company.

Solution

WIL was involved in several areas:

• high-level implementation of the <<Track and Trace>> system;
  
• preparation of a technical report listing the eligible intangible assets, specifying whether or not the complementarity restriction applies, describing the R&D activities connected to them, and stating the criteria for calculating the financial contribution originating from use of the company trademarks;
  
• specification of the method for calculating income eligible for the tax relief for the first year of the scheme and for the following four years;
  
• assistance at the beginning of the Ruling application, preparation of supporting documents, and definition of the ruling agreement with the Italian Revenue Authority;
  
• annual monitoring and updating of R&D costs connected to the trademarks eligible for the scheme and updating of the calculations for the estimate of the eligible income for each financial year of its five year duration.
  

Benefits

• Less tax due during the five year relief scheme.
• Encourages corporate investment in R&D projects.
• Encourages the protection and maintenance of intangible assets owned by the company.