Intellectual Property Co.

Example:

A company has purchased intellectual property that cost €50. The company incurs direct expenses relating to the intellectual property of €30. The revenue for the year is €100. The corporation tax to be paid on this income from the intellectual property will be as follows:

Description EUR
Revenue 100
Direct Expenses -30
Capital Allowances (50 x 20%) -10
Profit 60
80% exemption (60 x 80%) -48
Taxable Profit 12
Corporation Tax at 12.5% 1,5