Bearing in mind that within the European Union there are no withholding taxes on IP royalty payments between one member state and another, we can suggest a number of countries where royalty income taxes are particularly advantageous.
CYPRUS The intellectual property royalty tax system in Cyprus changed as a consequence of the recommendations of the Organisation for Economic Co-operation and Development (OECD)'s Action 5 report, as well as the conclusions of the Ecofin Council, published on 8 December 2015. The legislation was amended to limit the companies that can benefit from exemptions for research and development (R&D), but the tax rate in Cyprus is still one of the most favourable in the EU for foreign companies wishing to license the use of IP to a Cyprus-resident company (intermediary), where that right is then sub-licensed to the end user. Overall, the effective tax on income from IP royalties should be less than 2.5%.
IRELAND In 2015, Ireland introduced an effective corporation tax rate of 6.25% on income derived from IP, based on an allowance for the research and development costs sustained by the company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly, inside the EU — leading to the creation of IP — whereas it discourages them from buying licences without making a direct commitment to R&D.
BELGIUM Belgium has established a tax regime that works in favour of those with income deriving from acquired copyrights. This fiscal regime can have many different applications, and can be used to protect artworks as well as providing a useful tax concession for IT developers. Revenues deriving from royalties on IP rights are taxed at 15%. These revenues are not taken into account when social security contributions are calculated. Moreover, for imports these taxes are reduced by 50% due to the application of standard entry costs. The first 15,000 euros earned by a copyright holder in a year is therefore taxed at 7.5%, and the following 15,000 at 11.25%. This tax system applies to those with a total annual income of up to 56,450 euros.
THE NETHERLANDS Since 2010, IP revenues in the Netherlands have been taxed at just 5%. There is no income threshold, except with respect to patents. Patent holders can in fact have access to this tax system if their share of the expected income is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies that own intangible assets or companies that have obtained a research and development accreditation from the Dutch Ministry of Economic Affairs, if they are the holders of software IP or trade secrets. The only other limitation of this favourable tax regime is that it does not apply to marketing- and brand-related assets.
LUXEMBOURG Generally, corporation tax in Luxembourg is 29.22%, but on revenues from IP licensing it can be as low as 5.8%. This is due to a corporate income tax exemption of 80%. Interestingly, this exemption also applies to companies that have registered a patent to be used in connection with their own activities, which then calculate a fictional net income, as if they had received the income from licensing it.
ITALY Italy is a bigger market compared to the other countries discussed, and it can be a very attractive place for a company to invest in research and development, because since 2015 companies have been able to deduct income deriving from intellectual property from their taxable income base. The fiscal deduction was set at 30% in 2015, 40% in 2016 and 50% starting from 2017. Companies will therefore enjoy a substantial tax discount as a result of the reduction in their taxable income.
Website development is an essential part of any business as the majority of customers (around 80%) are now found through various online channels and sources. In other words, not having a website only makes sense for small businesses in small communities aiming for no more than a few dozen customers. Still, such companies could use their websites to start a rapid development process that would help them push beyond their limits and hence a company website is more or less a must for every business.
A business website can serve multiple purposes and perform a number of internal and external functions to increase the success of your business. Internal functions refer to the actions that users take when they are already on the website, while external functions serve to drive customers to the website, ie. H. they relate to how the website appears on other portals, such as search engines.
The logistics performance index of Armenia is 2.67. It indicates satisfactory performance - in general, traffic is handled well, some shortcomings in certain areas are possible, but overall the logistics system is reliable and ready to handle predictable traffic volumes.
Inch performance is rated at 2.62. This indicates satisfactory performance - the customs clearance procedure is generally effective, although a long time can occasionally be a problem; the customs system certainly does not discourage international business activities; required documents and fees are generally publicly available.
Infrastructure quality in Armenia is rated at 2.38. It indicates mediocre quality - roads, railways, ports and other facilities are capable of handling some significant traffic, but not enough to ensure smooth transit at all times.
International shipping quality is 2.75. It indicates satisfactory performance - the services are reasonable and the prices are not too high and usually correspond exactly to the quality, although there is still room for improvement.
The competence of logistics service providers is rated at 2.75. The providers are competent - they ensure a good quality of their services and almost always maintain this level; Deficiencies, while still possible, are usually minor and do not discourage further use by providers.
Tracking options for shipments are rated at 2.5. It indicates satisfactory performance - the tracking systems provide all the basic information, as well as additional data about shipments; Mostly it also has a well-established cooperation with foreign and international tracking systems and usually offers information in several languages.
The ability to track shipments is rated 3. This indicates satisfactory performance - most shipments arrive on time and within scheduled timeframes; late arrivals are still possible, albeit uncommon.
In Armenia, 100% of the population has access to electricity. Armenia has 11 airports nationwide. There are 194,142 internet hosts in Armenia.
Road network The total road length in Armenia is 7,792 km (4,843 miles). Of these, 0 km (0 miles) of roads are classified as freeways, dual carriageways, or freeways.
Gas price On average, one liter of gasoline costs USD 1.3 in Armenia. A liter of diesel would cost $1.
In recent years, tax residence issues have become very important when dealing with tax declarations for the government, banks and tax offices. Obtaining tax resident status in the UAE has grown in popularity for several reasons:
The UAE is set to join the Common Reporting Standard (CRS) later than most other countries — starting from 2018. There are generally no taxes for corporate and private residents in the UAE on trading income, dividends, investments, bonds, etc. The UAE offers vast opportunities for international businesses; companies are easy to incorporate and can be managed effectively.
The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.
The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.
Company registration in Kazakhstan When starting a business in Kazakhstan, an interested investor must conduct due diligence on legal procedures, international regulations and sufficient investments for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.
Legal Documents Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.
Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.
Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in Kazakhstan when planning the creation of a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.
Norway has a corporate tax rate of 24%. Companies that operate under VAT have to pay tax on purchases at 25%. Certain services, like those related to foodstuffs and beverages, benefit from a 15% VAT rate.
The compliance function in a bank, brokerage firm or other financial institution is designed to ensure compliance with all applicable rules, laws and regulations, whether local or international. The traditional compliance model was designed as a law enforcement tool, with only a limited focus on real risk identification and management.
Today, however, the tasks of the compliance staff include monitoring bank activities and identifying and evaluating risk areas. The latter may include testing and evaluating the adequacy of the bank's policies and security and risk assessment tools. The compliance unit can also implement solutions to address identified risks, design compliance programs for new rules and regulations, and oversee employee training programs. Possible risks Compliance rules, laws and standards typically cover matters related to maintaining reasonable standards of market conduct and treating clients fairly. Depending on the size of their business, banks' compliance obligations can range from preventing conflicts of interest, money laundering and tax evasion to monitoring trading activities and ensuring compliance with applicable regulations. The compliance requirements for most financial institutions have increased significantly since the financial crisis of 2008, and new compliance issues are constantly emerging – such as conduct risk, risk culture, anti-money laundering and the risk of the Next Generation Bank Secrecy Act (AML/BSA) and third – and including fourth party risk.
The compliance function needs to broaden its focus beyond the financial institution and its employees. It is also responsible for ensuring that the bank's customers do not use the bank for illegal activities such as tax evasion, money laundering or terrorist financing. If illegal activities are suspected, the compliance office must ensure that the bank takes the right steps, otherwise it can be held liable.
While banks view compliance requirements as a way to keep their reputations clean, non-compliance can result in hefty fines, regulatory and legal penalties, and reputational damage. “Compliance risk” is defined as a bank's risk of suffering regulatory or legal sanctions, reputational damage or significant financial loss because of its failure to comply with regulations, laws, rules, relevant self-regulatory standards and codes of conduct applicable to specific business operations.
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