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How to optimize taxation on intellectual property rights?

Need help to optimize taxation on your intellectual property rights? Specific tax regimes are applicable to income generated with eligible intellectual property (IP) rights. Depending on the regime, which differs from country to country, and is subject to certain conditions, tax deductions can be applied to license revenues, to IP revenues “embedded” in the sales price of products/services or the application of production processes, to IP damages and to capital gains realized by selling the IP right. Users can also apply for a tax ruling on the application of the system to their activities with the competent authorities. 

For more than 10 years now, many countries have implemented specific tax regimes enabling companies to obtain tax incentives from the commercial exploitation of their intellectual property assets. 

While these regimes aimed to promote R&D investment in these countries, some national initiatives encountered downsides and some abuses from companies. That is why the OECD (together with the G20 countries) launched a specific program (BEPS – Base Erosion and Profit Shifting Project) to tackle these IP-tax planning strategies, among others. 

This project resulted in the remodeling of most of the national IP Box regimes to comply with international rules. 

IP-related tax regimes in Belgium and France are compliant with the international recommendations, enabling companies to get tax incentives from the commercial exploitation of eligible Intellectual Property Assets. 

Our approach starts with a good understanding of your business, your corporate structure, and activities. We then identify the activities that are relevant and assess their weight within the broader scope of your activities. 

One of our tax specialists calculates a percentage of revenues that can be allocated to the relevant activities. After that, we draft a license or transfer agreement as well as corporate and other documents that may be required for tax audit reasons. 

For those owners who wish to obtain more certainty as to the application of the regime to their activities, we will assist in drafting and obtaining a ruling from the national tax authorities. 

This is how we empower you: 

  • Audit of your activities in view of tax optimization 
  • Advise on licensing and transfer taxation 
  • Preparation of documents for tax purposes 
  • Drafting of tax rulings 
  • Collaboration with your accountant 

Need help to optimize taxation on intellectual property rights? Trust upon our expertise and get in touch.

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