Business advice

Best 5 jurisdictions for receiving royalties from intellectual property rights 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 com...

5 Countries With Lowest Tax For Entrepreneurs in EU The list below contains five European countries with low or very low taxes for companies and individuals. Bulgaria: with a corporate income tax of only 10% for companies and individuals, this is an Eastern European country that also has lower costs for employment compared to other EU countries. Dividends from one Bulgarian company to another are not subject to dividend tax. Cyprus: Cyprus has a corporate income tax rate of 12.5%. Dividends received by a company that is a resident of Cyprus are tax exempt (both those received from a Cypriot company and those from a foreign company). The standard VAT rate is 19% with reduced rates of 9, 5 and 0%. These traits can be an advantage for those interested in offshore company formation. Ireland: the corporate income tax rate is 12.5% for trading income and, in general, dividends received by an Irish company from another Irish legal entity are exempt from the dividend tax. Hungary...