Industrial Property and Corporations Act


Article 23 of the Corporate Tax Act, in order to promote innovation, provides for a 50% reduction of the taxable base of income derived from the transfer of certain intangible assets.

These types of tax measures are typically known as “Patent Box”, and they originate in European Directive 2003/49/EC and are already applied in various countries in our area (Belgium, Luxembourg, Netherlands, etc.).

Intangible assets referred to in article 23 of the Act are patents, industrial designs, drawings, formulae and confidential procedures, rights to information relative to industrial, business or scientific experiences, expressly including the scope of application to brands, literary, artistic and scientific works, among others.

This tax measure is applicable to the transfer of intangible assets in any type of company or sector, and is likewise compatible with subsidies, grants, loans and other tax deductions. The limit provided for in article 23 of the Corporations Act is that the revenue obtained must not exceed six times the cost of the intangible asset.

An additional advantage of this tax benefit is that is also allows transfers between companies belonging to the same group.