Pharma and Life Sciences Tax News - Vol. 11, No. 3:

Patent box proposal could boost pharmaceutical and life science IP development and raise US global competitiveness

In the face of business model challenges, declining R&D budgets, and expirations of blockbuster patents, the pharmaceuticals and life sciences industry is among several that may benefit from a proposed US — patent box — tax regime. A US patent box (deriving its name from a box on the corporate tax form) would reward companies for commercializing innovative products by taxing the profits on their sale at a reduced rate. Such a regime in the United States could substantially reduce what now ranks as the highest tax rate among the Organization for Economic Cooperation and Development (OECD) countries for intellectual property (IP) income.

Supporters of a US patent box regime suggest, among other things, that it would further competitiveness of US companies and encourage the development and retention of IP within US borders.

Patent box proposal could boost pharmaceutical and life science IP development and raise US global competitiveness - 1 June 2012