Commentary

B5.301 Introduction to intellectual property

Business tax
Business tax | Commentary

B5.301 Introduction to intellectual property

Business tax | Commentary

Division B5.3      Intellectual property

For updates affecting this Division please see Part B0 Updates

General matters concerning intellectual property

B5.301 Introduction to intellectual property

Intellectual property acquired by companies after 31 March 2002

The tax treatment of intangible assets within companies is determined by a specific legislation within CTA 2009, ss 711–906 (Pt 8). Intangible property has the same meaning as for accounting purposes and includes internally generated assets and intellectual property. The rules apply broadly to intangible assets created or acquired on or after 1 April 2002 and are discussed in detail in Division D1.6.

In addition, the patent box provisions also apply to companies from 1 April 2013 and allow qualifying companies to elect to effectively apply a ten per cent rate of corporation tax to all profits attributable to qualifying patents, whether paid separately as royalties or embedded in the sales price of products. The patent box rate is not given as reduced rate of tax on

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