The “patent box” also known as “boîte à brevets” in some French-speaking countries is a preferential tax regime designed to encourage companies to develop and exploit patented innovations by reducing the tax rate on income generated from the exploitation of these patents. This system aims to stimulate research and development (R&D) in the private sector through tax incentives on profits derived from intellectual property.
Under a patent box regime, profits from the exploitation of patents, such as royalties or income from the sale of patented products, are taxed at a significantly lower rate than the corporate tax rate. The goal is to make the country implementing this regime more competitive in the field of technological innovation and to attract R&D investments.
Each country is free to configure its own patent box system with specific criteria and tax rates. This mechanism is used by many countries in Europe and beyond, with each adjusting the details of the regime according to its economic policies and technological development objectives.