Intellectual Property Tax War
Things are moving very quick in the Intellectual Property Tax world.
A few years ago IP tax incentives were not considered by many countries. In the last years several countries have developed very attractive tax treatment for companies wanting to manage their intellectual property in a tax efficient way.
The last one is Luxembourg which from January 1st 2008 is offering a fantastic rate of 6% on certain types of Intellectual Property income.
A field that was not even considered 10 years ago, is coming today as one of the leading edge advisory services.
The savings on a sound IP international structure can be substantial for any corporation.
In the world of Intellectual Property Tax Planning, as in the broad international tax planning arena, there are many advisory firms proposing smart tax schemes and great ideas. Very little attention is given to materiality and providing a sound structure to implement those plans.
In the years to come more countries will be trying to make IP Tax one of their main competitive advantages. Advisers, in coordination with their clients, will need to assess their overall policies and how well are they catered to provide all the ancillary services needed to succeed on this enterprise.
Having been involved in IP international tax planning many years , the question I always ask my clients before starting an IP project is how committed are you to develop and implement a strong IP strategy?
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