IP box: sourced answers
1 answer to specific questions — each with a verbatim quote from an official source and a link to it.
Every answer is checked against a verbatim quote from a stored copy of its source and has passed an independent review. This is reference information, not legal advice: rules change, and the outcome depends on your circumstances.
Tax regime
How is the regime's relief or obligation structured
a preferential tax regime that applies a reduced rate to qualifying income from intellectual property
«StatLink 2 https://stat.link/kry3np Qualifying assets and reduced tax rates In the Corporate Tax Statistics database, qualifying assets of IP regimes are grouped into three main categories: patents, software and Category 3. These correspond to the only three categories of assets that may qualify for benefits under the Action 5 minimum standard: 1) patents defined broadly; 2) copyrighted software; and 3) in certain circumstances and only for SMEs, other IP assets that are non-obvious, useful and novel. The Action 5 Report explicitly excludes income from marketing related intangibles (such as trademarks) from benefiting from a tax preference. If a regime does not meet the Action 5 minimum standard, then the assets qualifying for the regime may not fall into the three allowed categories. Of the 46 regimes found to be not harmful, all 46 regimes cover patents, 34 cover software, and 20 regimes cover assets in the third category (Category 3). All six regimes that are in the process of being eliminated or amended do not have any restrictions on the type of income that qualifies for a reduced rate, although other restrictions may apply, (e.g. to certain industrie»
Source: oecd.org · source copy as of 2026-10-03
«es from a full exemption to a reduction of about 40% of the tax rate that would have otherwise applied. The most common reduction is a 50% reduction. The reduced rates range from 0% (in 18 jurisdictions) to 18.75% (Korea’s Special taxation for transfer, acquisition, etc. of technology; this IP regime offers reduced rates ranging from 5% to 18.75%). Five of the six regimes that are in the process of being amended or eliminated offer a full exemption from taxation for IP income. For each of the46 non-harmful IP regimes, Figure 6.5 and Figure 6.6 show the lowest reduced rate offered under the regime and the tax rate that would otherwise apply. Figure 6.5 shows those regimes with the status non-harmful, while Figure 6.6 shows the regimes that have been amended to be non-harmful. The tax rate that would otherwise apply is»
Source: oecd.org · source copy as of 2026-10-03
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