Tax incentives and ip-box
Structuring your IP and R&D costs to qualify for IP Box regimes — including the UAE (0% rate), Cyprus, and other jurisdictions on income from qualifying intellectual property.
What our clients face
Minimizing tax on IP income
You develop software, implement technology solutions, manage licenses or patents, or monetize copyrights and proprietary know-how — and you want to minimize your corporate tax burden through IP Box regimes in the UAE, Cyprus, and other jurisdictions.
Navigating the IP Box regime
The IP Box regime allows eligible companies to apply a 0% corporate tax rate on income derived from qualifying intellectual property, but qualifying requires demonstrating genuine development activity, not merely owning the rights.
Understanding nexus ratio requirements
If you are unsure whether your R&D expenditures meet the nexus ratio requirements, or how to structure your costs to maximize the benefit, you need specialist guidance.
Our approach
IP Box eligibility assessment
Assess whether your intellectual property and development activities meet the applicable IP Box criteria (e.g. UAE, Cyprus).
R&D cost classification
Classify your R&D expenditures into qualifying costs (internal R&D, employee salaries, equipment, outsourcing to independent developers abroad, outsourcing to developers within the jurisdiction) and non-qualifying costs (software and patent purchases, outsourcing to related developers abroad).
Nexus ratio calculation
Calculate your nexus ratio using the formula: Overall IP income x (qualifying R&D costs / total R&D costs) x 130% = 0%-rated IP income.
Cost restructuring opportunities
Identify opportunities to restructure spending so a greater share of costs qualifies under the regime.
Documentation preparation
Prepare the supporting documentation needed to substantiate your claim to tax authorities.
Stages of work
Consultation
We discuss your business model, IP portfolio, and current R&D cost structure.
Eligibility analysis
We evaluate whether your company actively participates in IP creation and whether your intellectual property qualifies under the regime.
Cost classification
We map all R&D expenditures into qualifying and non-qualifying categories.
Nexus ratio calculation
We compute your current ratio and model scenarios for optimization.
Implementation
We prepare the necessary filings and documentation to apply the 0% rate on qualifying IP income.
Discuss
the Task
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we’ll help you with it in any jurisdiction.