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Intellectual Property Management

Create value by harmonizing IP management and tax strategies

Companies across sectors are developing more intellectual property (IP) and intangible assets as part of their digital transformation. Equally, tax laws related to IP and intangibles are evolving. Accordingly, decisions regarding how to identify, create, own, value, monetize, and position IP so that it reflects an organization’s broader operating model and tax strategy deserve careful consideration.

Deloitte’s intellectual property tax teams work with you to assess compliance with current regulations and to clarify the potential consequences and opportunities afforded by your organization’s IP and intangibles management. We navigate the international tax landscape and implement processes to assess current IP use as well as potential dispositions.

Intellectual property lifecycle management

Like tangible assets, the lifespan of intellectual property should be actively managed to prevent owners from facing unintended tax consequences related to IP development, enhancement, maintenance, protection, exploitation, and location. Tax considerations relevant to a successful IP strategy include:

  • The tax environment in the IP location and its impact on after-tax returns and asset values;
  • The tax and transfer pricing implications of IP transfers between business entities and/or across borders; and
  • Evidencing and documenting IP rights, inventory, and use.

Deloitte can put in place rigorous and transparent IP lifecycle management processes and assist with long-term intangible asset management. We analyze IP at each stage of its lifecycle, from setting a base value at the time of creation or acquisition, to calculating value growth or depreciation and value erosion, quantifying relocation costs and values, and agreeing on asset obsolescence. This approach to IP management provides the confidence—and documentation—to use intangible assets strategically.

Intellectual property management during reorganizations

Deloitte teams can help you manage IP assets in the early stages of mergers, acquisitions, and reorganizations. This includes maintaining the ability to realize value from them, identifying opportunities to streamline IP portfolios, and clarifying IP’s tax profile. We also identify and reconcile valuation inconsistencies of the same IP asset in different contracts or locations and prepare robust documentation and defenses in the event of scrutiny from tax authorities.

Effective and tax-efficient intellectual property management is an ongoing discipline. Deloitte harmonizes IP and intangibles management, tax considerations, and business strategy to help enhance your organization’s operating agility and profitability.

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Low Hwee Chua

Low Hwee Chua

Regional Managing Partner, SEA Tax and Legal

Hwee Chua is a tax partner and has more than 25 years of experience in taxation services including two years with the Inland Revenue Authority of Singapore. He is the Regional Managing Partner for the... More