BDO Research & Development Tax Services

The following assessment tools should provide you with a high level indication of:

1. Whether your company might qualify for the KDB regime and
2. How much benefit the company might get from availing of the KDB regime

We would note that this tool is for indicative purposes only and that in advance of any claim being made under the KDB regime a full review of the relevant legislative provisions should be carried out. This tool is a high level calculator and will not result in a figure that is sufficiently accurate to be relied upon or included in any tax return.

Eligibility Assessment: Simply select yes or no to these questions and you will be informed as to whether you might meet the relevant regime requirements. Should you not be likely to meet any of the requirements, information will be provided below each question as to why this might be the case.

KDB Review

Question 1

Does the company exploit IP (e.g. patents, computer programs, other IP that is similar to an invention which could be patented)?

Question 1 of 5 completed. Please move onto question 2

In order to make a KDB claim the company must have be exploiting some form of IP.

Question 2

Has or did the company carry out R&D activities which wholly or partially contributed to the realisation of this IP?

Question 2 of 5 completed. Please move onto question 3

The KDB is linked to the level of R&D carried out by the claimant company and as such where no costs were incurred by the company in the realization of the IP, no claim would likely be possible.

Question 3

Has or will the company be deriving profits from exploiting this IP?

Question 3 of 5 completed. Please move onto question 4

The KDB regime offers an allowance that reduces the amount of tax paid on profits derived from underlying qualifying IP only.

Question 4

Can the company evidence the activities carried out in the development of the IP?

Question 4 of 5 completed. Please move onto question 5

In order to make a KDB claim a company must be able to demonstrate that the activities that led to the creation of the IP asset meet the R&D tax credit criteria, albeit an R&D tax credit claim need not have been made

Question 5

Can the company show what profits are related to the underlying IP in question?

Question 5 of 5 completed.

It is necessary to be able to show reasonable tracking and tracing of the costs, sales, and profits applicable to any underlying IP to be eligible for the purposes of the KDB regime.

You may be in a position to reduce the tax payable on these profits by 50% through the KDB regime.

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Based on the answers provided you may not be in a position to avail of the KDB regime.

However, should you wish to discuss in more detail with us please click button below

CONTACT

What is the Potential Benefit: Simply provide estimated figures of your R&D expenditure and associated profits. The potential benefit will be calculated for you.

KDB High Level Estimator

Insert estimated company historic costs in the development / enhancement of the IP in question

Insert additional group historic costs in the development / enhancement of the IP in question

Insert estimated company profits related to the IP in question

Original taxable profits

Estimated KDB relief

Updated taxable profit (after KDB relief)

Corporation tax due

Potential tax saving

Given the links between the KDB and the R&D regimes, it might also be useful to evaluate the potential to avail of the R&D tax credit regime. Click here to commence your R&D tax credit assessment .

More Information: For more in-depth information in respect of the KDB regime, or our specialised services in this area, please see below:

Download the KDB in-depth brochure

Review BDO’s KDB service offerings

If you would like to request more information on R&D tax credits or information on how we can assist your company, please contact us here