IP Management Location works with international companies in the technology, industrial and internet sectors. He specializes in the fields of intellectual property, unfair competition, licensing and distribution, as well as information technology. In addition, he has extensive expertise in compliance matters regarding gambling providers, e-transactions and export control measures. and auditing firm. He focuses on administration and support for international corporations, on audits of trading and service companies, and on audits in the occupational pensions sector. Kreuzstrasse 42 CH-8008 Zurich Switzerland +41 44 254 99 66 Phone +41 44 254 99 60 Fax andreas.glarner@mmepartners.ch www.mmepartners.ch Othmarstrasse 8 CH-8024 Zurich Switzerland +41 44 267 17 38 Phone +41 44 267 17 10 Fax pkeller@treureva.ch www.treureva.com Switzerland introduced its License Box, an attractive tax regime for IP (Intellec- tual Property) companies with a reduced tax rate for license income. After two years of positive experience, it may be considered the most liberal and advanta- geous among comparable systems within the European countries. Innovation Companies leading financial centers, but also provides an outstanding environment for innovation. Switzerland ranks first in World Intellectual Property Organiza- tion's Global Innovation Index 2012 and is according to the Innovation Union Scoreboard 2013 the overall innova- Member States. Factors which enable Switzerland to hold this position are certainly a stable political situation, a very stable cur- rency with minimum transfer restrictions, highly sophisticated and secure financial institutions and the fact that Switzer- land is home of some of the world's most recognized research institutions. Furthermore, its geographic location in the heart of Europe, its rich nature and the high quality of life, make Switzerland attractive for highly educated personnel. Another key factor lies in Switzer- land's tax system: Traditionally, Switzer- land is known for competitive tax rates. This, on the one hand, is due to the fact that Switzerland has a direct democ- racy in which taxpayers have the right expenses. On the other hand, the states (cantons) are competing with each other to offer benefiting tax regimes which attract companies and individuals. With the introduction of the License Box system in 2011, the Canton of Nidwalden further reduced the taxing obligations for IP companies on net license income: The fixed income tax on net license income derived from the use of intellectual property is only one fifth of the regular income tax, i.e 8.8%. Other European jurisdictions know very similar tax regimes for income generated through IP rights. This article will provide an insight on the differences of the different regimes and particular advantages. with a statutory domicile in the Canton of Nidwalden to operate a separate division, the License Box, as part of its regular commercial operations. All IP and research and development (R&D) related activities, in particular related license incomes, are attributed to the License Box within the company. Incomes generated by the License Box are subject to the reduced tax rate. Consequently, the License Box system allows a company to conduct any kind of operational business activities |