Patented inventions in Ireland provide a large source of revenue in the pharmaceutical and technology industries. Ireland's tax exemption in respect of certain patent royalties has been one of the driving factors behind investment by multinationals, principally from the US, in the Irish economy. After much recent speculation about the possible removal of the Irish patent exemption from the Irish statute books, in a welcome development, the Irish government in its recent budget retained the tax incentive for companies creating patentable intellectual property in Ireland. In this month's piece we give an overview of the main provisions of the exemption.