reMYND NV has received a positive ruling from the Belgian Tax Authorities. The ruling stipulates that the upfront license fee, all milestone payments and royalties linked to Roche Basel will qualify for the patent income deduction under Articles 205 WIB 92.
In September 2010, Roche and reMYND have entered into a strategic alliance to develop first-in-class disease-modifying treatments, which could slow down neurodegeneration in Parkinson’s and Alzheimer’s patients by inhibiting α-synuclein and tau toxicity. The collaboration focuses on several of reMYND’s pre-clinical small molecule programmes, covered by a granted patent. Under the agreement, reMYND could receive milestone payments, additional FTE payments and royalties on resulting net sales.
The Belgian patent income deduction legislation (Articles 205 WIB 92) wants to foster the local investments in innovation and the monetization of such innovation, by providing a beneficial treatment of revenues from a granted patent. Only twenty percent of such revenues needs to be recognised as taxable income, while the remaining eighty percent is tax exempt.
reMYND and its advisors have applied for a tax ruling for the Roche upfront, milestone and royalty payments under the Belgian patent income deduction legislation, and have obtained a positive ruling. Koen De Witte, Managing Director of reMYND commented “We are very happy with this ruling as it recognizes our underlying business model aimed at developing breakthrough innovations, and generating revenues by monetizing on a strong intellectual property position. As such, this ruling will allow us to keep more cash in the company, which we can devote to other innovative programs.”
Read the full press release in English.