Patent Box - OECD hears from business
March 18, 2015
By: Angela Browning
At an informal consultation meeting on 10 March, the OECD heard from businesses regarding the practical application of the Modified Nexus Approach to Intellectual property (IP) and patent boxes.
Joined by delegates from member states and the Business and Industry Advisory Committee (BIAC), the OECD welcomed the input to help them better understand how the Modified Nexus Approach could work in practice.
It is clear that the OECD supports the policy intent of encouraging innovative economic activity, providing tax benefits are only given with activity. The meeting focused on three key issues: 1) Tracking and tracing; 2) Qualifying IP definition; and 3) Treatment of acquisition costs. Businesses asked for flexibility around tracking and tracing to accommodate the wide range of companies wishing to make claims.
Over the following 3 days, the OECD member state delegates met for further deliberations on this topic. We understand that further meetings are proposed in May and July and that no decisions have been taken or agreement reached yet. The OECD must complete its work this year, and will therefore report back to ministers and leaders this Summer.