2% is the effective tax rate on income from IP in Cyprus. Stefan writes:
"A recent amendment to the tax law, in force since 06 July 2012, provides 80 % tax exemption on income from IP. The remaining 20 % of the income from IP are taxed at ordinary 10 % corporation tax, which results in an effective tax rate of 2 % on the income from Intellectual Property.
Intellectual Property includes: patents, brand names, software development, copyrights on music, visual productions (film, TV etc), book etc.
Income from IP: income from the sales of IP or from license fees received for granting the right to use IP.
Depreciation of IP development costs or IP purchase costs is 20 % annually".Can readers from other jurisdictions improve on this? And can they also warn of possible downsides that low-tax seekers might not appreciate if locating their IP portfolios in tax havens?