Tuesday, July 16, 2024
Today’s News

Maximum IP Potential Because there is No Tax in Free Zones

Research and development (R&D) of intellectual property assets by a qualifying free zone person (QFZP) may result in a portion of income from qualifying intellectual property (QIP) assets being eligible for zero percent corporate tax; non-qualifying income from QIP assets and income from non-QIP assets is subject to a flat nine percent tax rate; income subject to the nine percent tax will not be taken into account when applying the de-minimus test.

Suppose there is a clear correlation between the income from the QIP asset and the qualified research and development costs that went into creating that income. In that case, a QFZP can produce qualifying income from the QIP asset. The income component associated with the acquisition cost or outsourced R&D does not qualify as qualifying income when a QFZP acquires a QIP asset or contracts R&D services to a related party outside the United Arab Emirates.

Intangible assets such as patents, copyrights, software protected by copyright, formulas, trademarks, brands, and technical know-how legally owned and registered under an individual’s name are called intellectual property. These intangible assets fall into one of two categories: non-QIP or QIP.

Also Read:

UAE: Over the weekend, Gold Prices in Dubai Dropped. 

Anti-Government Protests in Kenya Caused At Least 30 Deaths.


Press Release

Letest News


Tuesday, July 16, 2024

Entrepreneur Mirror is a platform with a significant focus on business, technology, startups entrepreneurship, leadership, innovation, content creation, prominent business personalities, and many more across the globe. Further, the company publishes interviews, business content, press releases, articles, etc. 


Copyright © 2024 Entrepreneur Mirror All Right Reserved