The Great Race to the Patent Box

Andrea Tempestini said that favorable new tax laws and “the cooperative attitude shown by the Revenue Agency” have encouraged companies to keep brands and patents in Italy, but added that these conditions must continue. “The incentives make sense if they trigger virtuous behaviors that otherwise would not occur,” Mr. Tempestini observed, “but no company changes strategy for a tax rebate if it thinks the tax rules are not stable in the future.”