Royalty Management Services
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The cross-border flow of royalties can incur additional levels of taxation called 'withholding tax'. However, the flow of royalties need not bear these additional taxes. Our royalty management experts can efficiently structure such flows through companies located in several different jurisdictions.
The following example provides insight to the above:
A company holding title to intellectual property (eg. copyrights for movies, image rights and industrial property rights to trademarks, patents and software) can grant a user-license to a special 'royalty company'. The royalty company then sub-licenses these rights to other companies worldwide.
The tax benefits of the location of the entities in the royalty management structure ensure that the royalties paid can be deducted from royalties received, leaving only a small taxable spread in the royalty company's jurisdiction. Such a structure can effectively reduce cross-border distribution taxation by over 98%.
For more information on our royalty management services
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