Making way for the innovation income deduction, its predecessor – the patent income deduction – was abolished on July 1, 2016. The incentive will, however, remain available for a ‘grandfathering period’ of 5 years.
As such, you may still opt for this earlier deduction scheme for patent income earned up to June 30, 2021. Its scope includes:
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self-developed patents requested before July 1, 2016;
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improved patents and patent licenses acquired prior to July 1, 2016.
Note: if you opt for the patent income deduction, you are not able to apply for the innovation income deduction in relation to the relevant patent for the taxable periods ending before July 1, 2021.