Royalties/Patents/Copyright Holding Companies

The purchase or assignment of the right to use a patent, trademark, copyright or other "know how" to offshore companies often allows the royalties to be paid to the offshore company at a lower tax rate than could otherwise be enjoyed. These royalties are often subject to tax withholding at the source country; however these taxes may be lowered through offshore company formation in a second country. This type of offshore corporation is often established utilizing a tax resident entity that is able to access double taxation avoidance treaties such as the Seychelles CSL.