759 Spreading of revenue payments over several years

Summary

The section provides that where certain royalties or other similar sums are received for the use of a patent that extends over a period of 6 years or more, the recipient is entitled to have his/her tax liability readjusted on the basis of spreading the royalties or similar sums over the preceding 6 years.

Details

Married couples/civil partners jointly assessed

(1) In the section references to tax payable by a person who is jointly assessed include references to tax payable by the person’s spouse or civil partner.

Spreading of lump sum payments

(2) Where the owner of a patent receives a royalty lump sum under deduction of tax, covering use of a patent in a past period of 6 years or more, that person may apply to have his/her tax liability adjusted on the basis of spreading the lump sum over the preceding 6 years.

Spreading over shorter periods

(3) The right to spread lump sum payments is extended to cases where the period of use has exceeded 2 years and is less than 6 years. In such cases, the payment is to be spread back for the number of complete years of use.

Non-application to non-residents

(4) The section does not apply to capital sums from which tax is deducted under section 757(2), namely, lump sums paid to a non-resident who sells Irish patent rights. Section 757 contains its own provisions for spreading such lump sums.

Relevant Date: Finance Act 2021