How to reduce the Tax burden on IP assets

Quick summary: What’s this booklet about?

Intellectual property (IP) can be a great source of passive income, i.e., income that does not require daily effort to maintain. However, such income attracts not only entrepreneurs but also tax authorities. Most countries impose high taxes on revenues generated from IP assets, thus disincentivizing their citizens to develop such assets. To illustrate, the United States levies a withholding tax of 30% on certain US-source IP royalties paid to foreign persons.

The purpose of this e-book is to discuss some legal tax optimization techniques that will help IP owners to reduce their tax burden. More specifically, we will discuss the use of patent boxes, relocation to low-tax jurisdictions, and contractual structures enabling the reduction of tax burden on IP assets. To provide the reader with background information necessary to better understand those techniques, we will initially examine the different types of IP assets.

By reading this book, you will learn:

1. Introduction 
2. Types of ip assets 
3. Patent boxes 
4. Relocation to low-tax jurisdictions
5. Contractual structures enabling the reduction of tax burden on ip assets 
6. Tip 
7. Concluding remarks