80% tax exemption on IP
Only 5.72% is the tax rate on income generated by your trademarks, domain names, patents, designs, models and software in Luxembourg. This initiative from the Luxembourg government aims at promoting the development of intellectual property and new technologies in the country. So, here are the facts to help you benefit from a unique, attractive tax advantage.
Background of the new IP law . December 21, 2007 - Bill 5801 was adopted to provide an 80% tax exemption for some intellectual property rights revenue, as defined in Article 50bis.
. December 24, 2007 - VAYTON Brand Capital was created to assist companies worldwide to develop and manage brands in Luxembourg.
. December 19, 2008 - Paragraph 60a, under Article 50bis, was introduced as an amendment declaring domain names as eligible intangible assets.
. March 5, 2009 - The Luxembourg tax administration published a clarification that precisely defined the conditions for granting a tax exemption.
What Kinds of Intellectual Property Apply? Trademarks, domain names, patents, models and designs as well as copyright on software may be granted up to an 80% tax exemption.
What Are the Requirements for Qualifying? The two main conditions are 1. Intellectual Property was created or acquired after December 31, 2007 2. Intellectual Property is utilized or licensed by a Luxembourg company.
Who Benefits from the Tax Exemption? New companies and businesses that regularly launch new products, Brand owners and domain names owners, software designers, architects or franchises with international development operating within Luxembourg benefit from this new law.
With this new IP law, VAYTON brings a unique tax advantage for your company.VAYTON can ensure the identification, establishment and management of your intellectual assets to increase their value.