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]

suzy said:
Tax adviser is the best choice to get the right answer.
Click to expand...

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.

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​