The Italian Stability Budget Law approves the Patent Box: measures and benefits for the Fashion Industry.

by eleonoracurreri



The so called “Stability Budget Law 2015”[1], a bill that aims at boosting the economy of the country for the next three years, has introduced a “Patent Box”, in other words it is a preferential tax regime to promote the development of IP in Italy.


The new discounted tax regime is applicable to all those incomes that originate from the use or licensing of intangible IP assets (patents, trademarks, copyright, design). It is an irrevocable option that last five years and the amount excluded from taxation is 30% in 2015, 40% in 2016 and 50% by 2017. One of the most interesting aspects of the Patent Box is that it can be applied not only to Italian companies but also to foreign residents in countries that have a double taxation agreement with Italy.


The amount of income which is tax exempted is proportional to the costs necessary for R&D (research and development) activities performed by the taxpayer. When the assets are used within or in relation with a business the exempted income is calculated through a ruling system set by the Italian Revenue Agency. Furthermore the profits that derive from the sale of IP do not form the basis for taxes if the 90% of these incomes have been invested in similar IP activities of the same holder.


These provisions represent an innovative step for the Italian Legislation that for the first time focuses on IP by stressing its commercial and business value for the national economic growth. These measures promote not only innovation but also investments in Italy and in the creative industries. The Fashion Industry will enormously benefit from the Patent Box provision as it encourages creativity as well as business ventures.

Eleonora Curreri, QMJIP Assistant Editor
[1] The text of the Bill can be found here