Companies engaged in the development of intellectual property rights and the subsequent licensing of these rights and the collection of royalties must always consider which is the best investment structure which among other factors have the least tax leakage.
Cyprus has positioned itself among the best tax planning jurisdictions to establish a company.
Tax Resident companies are taxed on their worldwide income; thus profits derived by a Cyprus royalty company are subject to 12.5% corporate tax. The tax is imposed after deducting any royalty payments as well as any other expenses incurred wholly and exclusively for the production of the royalty income.
Royalties received by a Cypriot company from abroad may have been liable to a withholding tax on payment in the country of origin.
For more details and information on the above, please visit the following website www.multilysis.com