How the Knowledge Development Box (10% effective rate, sunsetting for periods from 1 January 2027) rewards owning and developing qualifying IP in Ireland — not buying AI tools.

dgm is an independent osFoundry implementation partner — not affiliated with osFoundry’s developer (the company OS LLC), and it has not yet completed any client integrations.

The Knowledge Development Box is a corporation-tax relief (an IP/patent box) for companies that own and have developed qualifying IP in Ireland — not for companies that buy AI software.

What the scheme actually gives

  • 10% effective rate on qualifying profits from qualifying IP (patented inventions and copyrighted software developed in Ireland), via a deduction against the 12.5% rate (raised from 6.25%).
  • Available for accounting periods commencing before 1 January 2027, with a review of the regime under way; no change was announced in Budget 2026.
  • Benefits firms that own and have developed qualifying IP — not those who license or buy AI tools.

Does it fund buying AI software?

The KDB rewards owning and developing qualifying IP in Ireland; it does not pay a company to buy AI software. A platform such as osFoundry lowers the cost structurally through usage-based pricing and the BYOK principle — which helps more than waiting for support that does not cover software.

Important note

This article is general information and is not legal, tax or grant advice. Tax schemes, grants, rules and rates change, and only the relevant authorities (among them Revenue, IDA Ireland, Enterprise Ireland, the Data Protection Commission and the Central Bank of Ireland) decide eligibility and awards. dgm is not a grant deliverer, approved knowledge provider or intermediary. Always confirm the current terms with the official source or a qualified tax or legal adviser.

How dgm helps

dgm is an independent implementation partner that helps businesses in Ireland adopt osFoundry — from identifying the first practical use case, through building it, to connecting AI to the systems you already use. dgm works independently of osFoundry’s developer (the company OS LLC) and has not yet completed any client integrations; everything above is therefore a description of the service offered, not a delivered result. If you would like to look at a sensible first step, dgm is happy to think it through with you. Arrange a no-obligation conversation with dgm.