Bearing in mind that within the European Union there are no withholding taxes on IP royalty payments between one member state and another, we can suggest a number of countries where royalty income taxes are particularly advantageous.

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 company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly, inside the EU — leading to the creation of IP — whereas it discourages them from buying licences without making a direct commitment to R&D.

BELGIUM
Belgium has established a tax regime that works in favour of those with income deriving from acquired copyrights. This fiscal regime can have many different applications, and can be used to protect artworks as well as providing a useful tax concession for IT developers. Revenues deriving from royalties on IP rights are taxed at 15%. These revenues are not taken into account when social security contributions are calculated. Moreover, for imports these taxes are reduced by 50% due to the application of standard entry costs. The first 15,000 euros earned by a copyright holder in a year is therefore taxed at 7.5%, and the following 15,000 at 11.25%. This tax system applies to those with a total annual income of up to 56,450 euros.

THE NETHERLANDS
Since 2010, IP revenues in the Netherlands have been taxed at just 5%. There is no income threshold, except with respect to patents. Patent holders can in fact have access to this tax system if their share of the expected income is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies that own intangible assets or companies that have obtained a research and development accreditation from the Dutch Ministry of Economic Affairs, if they are the holders of software IP or trade secrets. The only other limitation of this favourable tax regime is that it does not apply to marketing- and brand-related assets.

LUXEMBOURG
Generally, corporation tax in Luxembourg is 29.22%, but on revenues from IP licensing it can be as low as 5.8%. This is due to a corporate income tax exemption of 80%. Interestingly, this exemption also applies to companies that have registered a patent to be used in connection with their own activities, which then calculate a fictional net income, as if they had received the income from licensing it.

ITALY
Italy is a bigger market compared to the other countries discussed, and it can be a very attractive place for a company to invest in research and development, because since 2015 companies have been able to deduct income deriving from intellectual property from their taxable income base. The fiscal deduction was set at 30% in 2015, 40% in 2016 and 50% starting from 2017. Companies will therefore enjoy a substantial tax discount as a result of the reduction in their taxable income.

Confidus Solutions is an international team of law and finance experts providing company formation, business immigration, banking, accounting and other business support services worldwide. We have numerous experts and partners around the world. Our lawyers and agents have served over 5000 clients in 10 years. Our many years of experience and competence enable us to offer first-class services worldwide. Our greatest values are your time and convenience, which makes Confidus the best choice as your corporate attorney.
International business advisory, tax planning, bank account opening, company registration included in wealth management suite by Confidus Solutions.
Our services include
Company formation;
bank account opening;
business model consultation;
international accounting;
ready-made company acquisition;
trademark registration.

The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.

The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.

Company registration in Guatemala
When starting a business in Guatemala, an interested investor must conduct due diligence regarding legal procedures, international regulations, and sufficient investment for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.


Legal Documents
Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.

Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.

Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in Guatemala when planning to start a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.

Opening a bank account in Guatemala
In connection with the formation of a company, it is necessary to open one or more bank accounts in Guatemala. Confidus Solutions offers the ability to open a bank account in over twenty jurisdictions, making it easy for you to avoid challenging language barriers or bureaucratic hassles.

Virtual office in Guatemala
Since a registered address is a necessity for international business, Confidus Solutions enables foreign investors to set up a virtual office in Guatemala. This address allows international entrepreneurs to accept mail, arrange for shipping and set up a registered bank account in their country of business.

If you have a company in Poland or setting up a business, then you have will have to prepare annual financial statements on the activities of the company. Financial reporting, management report, and auditor’s report – we are ready to provide you with all these services for your business.

Accountancy solutions
The principle of consistent and continuous entry of entries into the accounting account registers is implemented in the form of specialized books (ledgers), on the basis of which the annual financial report (sprawozdania finansowego) is drawn up.The reporting includes:

balance for 12 months (bilans) – submitted before July 15 of the next year;
information on profit and loss;
appendices and explanations: auditor’s opinion, protocol on the distribution of profits and payment of dividends, confirmation that the report was approved at the meeting of founders.

The full package of documents is submitted to the National Court Register (KRS), since 2019 this can be done only in electronic form.

If the company is not subject to registration in the register, then the report is sent through the Central Register – Centralnej Ewidencji i Informacji o Dzia?alno?ci Gospodarczej until April 30 of the year following the reporting year.


The specialists of our company will be happy to help you with bookkeeping in Poland. We provide a comprehensive, quality service for you, and all types of audit services including, financial reporting, management report, and auditor’s report, as well as give a consultation.

Maintenance of financial accounting and reporting
Our company takes care of all the issues related to accounting, from the processing of primary documentation to the provision of all necessary reports to the regulatory authorities.

Support for statutory or internal audit
We provide statutory and internal audit service to any organization is one of the important aspects of business activity.

Preparation of annual reports
Every year the company must submit an annual report about their activities. It does not matter if you made a profit or not. Our company provides accounting services for enterprises in Poland, which operate in various fields of activity.

Drawing up permanent reports on accounting documents
All organizations in Poland are required to prepare financial statements based on synthetic and analytical accounting data. The financial statements are signed by the head and the chief accountant (accountant) of the organization. By law, tax reports are submitted to the regulatory authorities on a monthly or quarterly basis.

Management of company accounts
Management accounting is one of the key factors when discussing business programs, plans, and goals in large organizations. Management accounts are usually built from multiple income statements of the firm. Management reports are usually prepared monthly or quarterly.

HR payroll management
The goal of HR payroll management is to simplify HR management processes and save your time. Payroll and tax calculations are also included in the package.