ARTICLE · 16 APRIL 2022

The Patent Box Scheme : Access a lower corporate tax rate

Clifford Gouldson Lawyers

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Australian businesses can access a 17% corporate tax rate for their business by Australia's new Patent Box scheme.

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How might Australian businesses unlock a 17% corporate tax rate for their business: by participating in Australia's Patent Box Scheme?

The Australian Government's 2022-23 Budget includes an expansion to Australia's new (commencing from 1 July 2022) patent box scheme. Patent box schemes are an increasing phenomenon around the world. It's a way for governments to encourage investment in discreet areas involving technological advancement by applying concessional tax treatment to profits derived from eligible intellectual property.

Currently there are around 20 jurisdictions, including the UK, Singapore and many European countries with such regimes.

By reducing the corporate tax rate for corporations investing in these discreet areas (in some cases to as low as 10%), governments hope to attract greater levels of investment and ultimately increased levels of passive revenues and resulting taxes from companies basing themselves in their countries.

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