One of the key announcements for multinational companies made by the Minister for Finance in the recent Irish budget statement was the introduction of a ‘knowledge development box’.  The Minister’s intention is that the ‘knowledge development box’ will be best in class and offer qualifying businesses a low, competitive and sustainable tax rate.  A public consultation will be launched later this month seeking input on the design of the ‘knowledge development box’ with a view to publishing implementing legislation in the next finance bill.  

However, the views submitted by participants during that consultation process are not all the Minister will take into account in the design of the ‘knowledge development box’.  There have been some recent developments both at EU and OECD level that will be relevant to its scope and operation. We consider those developments and how the ‘knowledge development box’ might operate.