Can we pay royalties to ourselves?

[dotbloup]

If i am the director / Shareholder of a company, can i pay myself royalties without using nominee shareholder / directors?

I think about the following: The right to use a brand, the right to use a domain name, programs, codes...

 

[negon]

Well if you own the company it is going to be complicated with your local‌ tax office but well possible. I think you need to consult a lawyer to help‍ you.

 

[suzy]

Tax adviser is the best choice to get the right answer.

 

[dotbloup]

I have already the answer, it was in the tax treaty between my country‍ and the country of incorporation. It was stated that if the person who receive the⁠ royalties is also involved in the company then, it is considered distributed profits and the⁤ tax is the same than dividends.

 

[Michael]

Could you set up new company that owns all the IP, it could then lease‌ back to original company. Good tax adviser would definitely know if that is possible

 

[JohnLocke]

That is possible. Actually that's one of the major reasons why many IT companies actually‌ register their companies offshore for instant in Romania, Cyprus, Malta etc.