• Liechtenstein IP regime

    16-05-2013

    Liechtenstein's IP regime is in some ways similar to those of Cyprus and Luxembourg (Cyprus IP regime, Luxembourg IP regime). It has also been approved by the European Free Trade Association (EFTA) Surveillance Authority (ESA) and is applicable from 1 January 2011.

    Tax incentives

    The main benefits of the Liechtenstein IP regime are the following:

    1. Deduction of 80% of IP profits. IP profits means IP income less all expenses connected with the IP (including amortization and similar deductions).
    2. Notional deduction of 80% of a deemed IP profit for IP used by a company in its own activity.

    Coupled with Liechtenstein's low corporation tax of 12.5%, the above exemption of 80% leads to an effective tax rate of 2.5% calculated as [(100% - 80%) x 12.5%].

    Conditions

    Qualifying IP rights - patents, trademarks, models, and utility models, which must be protected by registration in a national, foreign, or international Register, as well as software and technical/scientific databases.

    Date of acquisition - the IP rights must have been acquired or created after 1 January 2011.

    Other IP regimes:

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  • The information provided in this article is for general information purposes only. The information is not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified professional on any specific matter.

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