The national accounts figures published during the week gave the clearest indication yet of a big move by US multinationals to shift their intellectual property (IP) rights to Ireland. This is being done as part of a clearing up exercise of their international structures.

Previously, IP rights relating to the sale of products outside the US were typically held by subsidiaries tax resident in offshore havens such as the Cayman Islands. With international rules tightening up in this area, it seems some are now choosing to locate their IP rights in Irish-based firms. Sources believe about a dozen companies have done this so far, with more to follow.

We usually think of investment spending as being on tangible items such as roads and machinery. But there is a big category in our investment figures for what is called “intangible” investment.

Most of this is accounted for by this trend of multinationals moving IP rights to Ireland, involving the booking of an investment in Ireland as the IP is a hugely valuable asset, reflecting all the creative work that goes into developing and marketing a product.

About 12-15 companies are believed to have done this so far, with some speculation that Apple is among them. It is not clear whether this shows up in the 2015 Irish figures, as Apple’s IP would be so valuable that it could well have increased the figures much further. As it was, intangible investment rose by €10 billion last year and was over €20 billion in total, representing more than €4 out of very €10 spent on investment in our economy.

This will change the routing of cash by the multinationals around the world. Up to now, money earned outside the US has typically been routed through Ireland, but then out to a tax haven. This was achieved by charging an Irish subsidiary for the use of the IP – with this charge paid to a company tax resident in an offshore haven. This had the effect of reducing the reported profits in Ireland.

In future, if the IP is legally owned by an Irish taxable entity, then more of the actual profit will be declared here. However, the companies involved will get very significant tax write-offs to account for the IP investment here. Over time some more tax may be paid here, though the smart money says not a lot.