Intellectual property management

In today’s economy, knowledge is king and it is more and more common for a group’s intellectual property to form the basis of its wealth.

Managing this intellectual property has become a vital part of any management team’s work, as there are ample opportunities to enhance returns when financial exploitation, legal protection, and tax strategies are combined effectively.

One of the most difficult and significant decisions in managing this IP lies in where to develop and hold it, as this can have a far reaching effect on the rate of return.

Luxembourg offers the following benefits for IP management:

• Tax incentives for research and development activities;
• Low effective taxation of the holding vehicle;
• Access to double tax treaty network providing for substantial withholding tax reductions on cross-border royalty payments;
• Favourable VAT rates and optimisation of input VAT recovery;
• Absence of strict domestic transfer pricing rules.

Furthermore, Luxembourg has been proactive in developing its IP standards and is party of all the major IP treaties and conventions, making it an ideal place to develop or manage IP.

At Deloitte we have a multi-disciplinary team of tax advisors that work closely with the financial advisory, legal, and accounting experts who can help you implement the most efficient structure for the management of your IP.