By the law decree 146/2021, Italy replaced its patent box regime.
Instead of a profit-based incentive, the new rules provide an extra deduction under certain conditions for research and development costs relative to copyrights, patents, models, know-how, and trademarks.
The new facility mechanism allows taxpayers to increase the costs of qualifying intangible assets by an additional 90% of their actual values, without connections to the profits generated by the intangible assets.
This tax relief is an alternative to the research and development tax credit provided by Law n. 160/2019, but it appears more attractive than the previous research and development tax credit.
The new patent box regime requires an irrevocable option of five years with the possibility to renew it. To not lose its effects, the above law decree shall be approved and become law within 60 days from the 21st October 2021.
In the meantime, it may be subject to adjustments.