CYPRUS The intellectual property royalties tax regime in Cyprus has changed as a result of the recommendations of the Organization for Economic Co-operation and Development (OECD) Action Report 5 and the Ecofin Council conclusions published on 8 December 2015. Legislation has been changed to limit the companies that can benefit from research and development (R&D) exemptions, but the tax rate in Cyprus is still one of the most favorable in the EU for foreign companies using Cyprus intellectual property want to license -resident companies (intermediaries), where this right is then sub-licensed to the end user. Overall, the effective tax on IP royalty income should be less than 2.5%.
IRELAND In 2015 Ireland introduced an effective corporation tax rate of 6.25% on intellectual property income based on an allowance for research and development costs borne by the company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly within the EU - leading to the creation of intellectual property - while discouraging them from acquiring licenses without directly committing to R&D.
BELGIUM Belgium has introduced a tax system that favors those with income from acquired copyrights. This tax regime can have many different applications and can be used to protect artworks as well as a useful tax break for IT developers. Income from IP rights royalties is taxed at 15%. This income is not taken into account when calculating social security contributions. In addition, these taxes are reduced by 50% for imports due to the application of standard import costs. The first €15,000 that a copyright owner earns in a year is therefore taxed at 7.5%, and the next €15,000 at 11.25%. This tax system applies to people with a total annual income of up to 56,450 euros.
LUXEMBOURG In general, corporate tax in Luxembourg is 29.22%, but for IP licensing income it can be as low as 5.8%. This is due to an 80% corporate income tax exemption. Interestingly, this exemption also applies to companies that have registered a patent for use in connection with their own business, which then calculate a notional net income as if they had received the licensing income.
ITALY Italy is a larger market compared to the other countries discussed and can be a very attractive place for a company to invest in R&D since 2015 companies have been able to deduct intellectual property income from their taxable income base. The tax deduction was set at 30% in 2015, 40% in 2016 and 50% from 2017. Businesses will therefore enjoy a significant tax rebate by reducing their taxable income.
THE NETHERLANDS Since 2010, IP income has been taxed at only 5% in the Netherlands. Except for patents, there is no income limit. Patent holders can actually have access to this tax regime if their share of the expected revenue is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies owning intangible assets or companies that have received research and development accreditation from the Dutch Ministry of Economic Affairs if they are owners of software IP or trade secrets. The only other caveat to this favorable tax regime is that it doesn't apply to marketing and branding-related assets.
Austria is a sophisticated and prosperous business centre, which serves as a trading bridge between Eastern Europe and Balkans. Austria welcomes foreign investors and rather than combating offshore countries, Austria makes tax treaties with them. In addition, tax-minimizing structures are developed for all types of companies, which allow the effective tax rate to be only 3-5%. These are only few of numerous benefits of company formation in Austria.
Business structure in Austria Choosing the right business structure may have critical consequences therefore it is highly important to explore all the available options before making this decision. Below are four most popular types of companies available for formation in Austria:
Joint stock company (Aktiengesellschaft) is designed for large businesses and its minimum share capital is 70,000 EUR. The capital is divided into shares and can be offered to the public. One shareholder is needed to start joint stock company and his or her liability is limited by the contribution to the capital. Limited liability company GmbH (Gesellschaft mit beschränkter Haftung) is the most popular type of company in Austria. The minimum share capital is 35,000 EUR from which 17,500 EUR or more must be deposited at the moment of registration and each shareholder must contribute with at least 7,000 EUR to the starting capital of the company. Shares of this type of company cannot be traded to the public. General partnership is formed by two or more corporate bodies or individuals with the same economic objective. Important to note, that all individuals participating in formation of general partnership have full liability for the company's debts as well as have equal rights in managing the partnership. No minimum capital contribution is set for general partnerships. Limited liability partnership can be formed if there is at least one partner with full liability on company's debts and can make major business decisions and at least one partner with his or her liabilities limited by the contributed capital and has no decision power.
Procedure of company formation in Austria The number one action for all new entities is to receive a confirmation from the Economic Chamber saying that the company is indeed a new enterprise. Then a document called Articles of association is drafted by a lawyer before a notary and a starting capital is deposited in a bank account and a confirmation deed of the funds is received.
After the above things are done, the company formation process can be started at the local court. For this process shareholders need to deposit following documents:
Application of registration; Notarized declaration of establishment; Articles of association; Confirmation deed that the starting capital is deposited in the bank; Specimen signatures of the board of directors. After around seven days, when the business entity is registered at the local court and the information is published at the local newspaper, the company can be registered with the local Tax Office. There you will need to fill an application and declare the Articles of association, certificate of company registration at the local court and specimen signatures of the company representatives. In exchange, Tax Office issues a VAT number and tax identification number.
The last steps include registration in the Trade Register, registration with the municipality and finally – registration of company's employees with the social security authority.
The average time needed to set up a company in Austria is 21 days, from which the most time – 12 days – is spent waiting for a tax identification number (the official deadline to obtain the tax identification number is 1 month).
Manufacturing is the largest economic sector in the world, which is also one of the most important, directly and indirectly accounting for a large part of all economic activity and all jobs worldwide. It processes items and is dedicated to either creating new goods or adding value by producing finished goods for sale to customers or intermediate goods to be used in the production process. After the industrial revolution that began in Britain a few centuries ago, labour-intensive textile production was successfully replaced by mechanization and the use of fuel. Today, manufacturing creates jobs, technological development and an increase in international investment.
For this reason, some jurisdictions are leveraging manufacturing output and value-added exports to increase their operations, business performance and revenue, and to address the challenges and opportunities that manufacturers face every day in conducting their businesses.
According to Deloitte's 2016 Global Manufacturing Competitiveness Index, China, the United States, Germany, Japan and South Korea are ranked as the top five most competitive manufacturing countries in the world. These countries generate about 60% of global manufacturing GDP.
China Canada and its provinces compete on a global scale for investments that result in low production costs, low wages for factory workers, and the adoption of globally popular product mandates. As a result, there are some significant trends in Chinese manufacturing that can easily be highlighted. These trends include creating a globally competitive, expansive manufacturing business model, helping to create a competitive business environment for manufacturing in China and increasing sales in domestic and overseas markets. This fact can encourage start-ups to grow, invest and compete with other successful manufacturing companies.
United States The United States is successful in attracting investment in many of the world's most active industries, such as aerospace, auto assembly, pharmaceuticals, to name a few. The USA has signed an agreement with Germany to implement a dual vocational training program for the advanced manufacturing sector. US business policies focus primarily on technology transfer, sustainability, monetary control, and science and innovation, giving manufacturing companies (automotive in Detroit and high-tech in Silicon Valley) a competitive advantage.
Germany Germany retains a relatively high share of manufacturing exports. The country provides long-term support in government-sponsored science labs and national programs created to foster manufacturing innovation in areas such as solar and wind power and renewable energy (renewable energy sources accounted for 28% of the country's electricity generation in 2014). In addition to an energy revolution in the manufacturing industry, the country is striving to phase out nuclear energy.
Japan Japan has a technology-intensive manufacturing sector that dominates the global manufacturing landscape in most advanced economies. The country maintains manufacturing competitiveness as there is a close link between manufacturing competitiveness and innovation. Japan has strong potential to become one of the most advanced manufacturing jurisdictions in the world. The Robot Revolution Realization Council was established in the country in 2014 as part of the Japan Revitalization Plan, introducing infrastructure and energy resources for next-generation vehicles. Japanese companies account for 50% of the global factory robot market.
South Korea As the world leader in the manufacture of liquid crystal displays (LCD), smartphones and memory chips, automobiles, and the world's largest shipbuilder, South Korea is actively pursuing growth in free trade agreements with more than 50 countries. The country invests heavily in education and produces a large number of researchers every year. It is also known that supporting manufacturing innovation in South Korea with venture capital investments to boost high-tech startups is identified as a strategic priority.
Modern companies require specialized, professional employees with a high degree of responsibility and special expertise in specific areas. Since most people today live in a very rapidly changing environment, access to continuous professional development that deepens employees' knowledge is required. Therefore, when it comes to finding the right people for the right job, it is crucial to go through every single stage of the hiring process, such as: B. the planning, recruitment and selection of employees.
The recruitment phase consists of the implementation of certain methods and strategies that a company uses to find applicants for employment. This means searching for potential employees using internal and external sources, reviewing and shortlisting the applications received based on the suitability and suitability of the candidates, and having potential employees evaluated by professional recruiters.
The methods and strategies to be used must be valid and appropriate to ensure an effective recruitment process. Consequently, certain resources are required to perform this process. The most important thing is to delegate the task to competent HR and recruiting professionals who can assess whether a candidate has the right skills and qualifications to be successful in the position. They also need to know where to look for the right candidates for open positions and how to attract both suitable and unsuitable candidates.
This means recruiters should be able to understand the market and therefore know what a suitable candidate looks like. For this reason, the best choice for an international company is to hire local professionals who are familiar with the market and can easily identify the right candidates for the positions on offer.
Local recruitment companies typically have background knowledge of the range of local staff available. As separate business entities, third-party companies relieve the client company's managers, directors and other employees of additional work that is at the expense of their regular roles and day-to-day responsibilities. Since the best results are achieved when one is fully focused on one thing, a professional third-party firm is more likely to be more successful in attracting the best talent than the firm's senior executives.
With outsourcing now becoming an option in a wider range of hiring strategies, some companies are using it to buy time and ensure a more responsive approach to customer needs. Local external service providers can be of great help to internal employees, mainly because of the time savings in managing and implementing the recruitment process.
Local recruitment companies can offer more engaging and convenient recruitment processes by staying in touch with candidates, understanding the position sought and expediting hiring processes. Due to the existing background knowledge, it is not necessary to specifically educate or train the employees in order to prepare them for such a responsible task with long-term consequences for the company. Local recruiters are also likely to avoid common pitfalls of the hiring process.
Local recruiters can easily find a common language with potential candidates in the local job market, find an easy way to contact and engage with them, and help the company connect with and engage with them Stay in touch by keeping them updated throughout the hiring process. This makes the recruitment process more effective, methodical and organized, i. H. smoother and more personalized in terms of the approaches used, leading to the selection of the employees who will make the best of their jobs in the future.
Major industries in the country are machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods. The Industrial Production growth rate of United Kingdom is 1.9%.4.4% of population in the country are unemployed. The total number of unemployed people in United Kingdom is 2,929,234. United Kingdom produces 365,700 GW/h of electricity each year. United Kingdom emits 7.1 metric tons per capita of CO₂. On average, you would pay 1.92 USD for one liter of gasoline in United Kingdom. One liter of diesel would cost 1.67 USD.
Labour The total labor force of United Kingdom is 33,769,000 people, wherein 1% are working in agriculture, 18% are working in industry, and 80% are employed in services. People in United Kingdom speak the English language.
The Republic of Poland, or simply Poland, is located in Central Europe and is part of the European Union. While the founding of the Polish state dates back to 966, Poland regained its independence and in 1989 made its way towards the advanced economy it is now. Poland is the eighth largest and is considered one of the most dynamic economies in the EU. It also has a leading school education system in Europe. Poland offers its citizens free university education, a universal healthcare system and state-funded social insurance. It is also a member of the Schengen Area, NATO, the OECD and the United Nations.
Poland is considered one of the most successful countries in the transition from communism to a market economy. The return of democracy was followed by the liberalization of the economy, the privatization of small and medium-sized state-owned companies and rapid growth in the private sector. Poland is the leading producer and exporter of apple concentrate and one of the leading producers of cabbage, berries and carrots. In addition to agriculture, Poland's most important economic sectors are coal mining, mechanical engineering and shipbuilding, glass, iron and steel production as well as food and beverage processing and the textile industry.
It is estimated that around 36% of foreign investment goes into manufacturing. Other attractive sectors for foreign investment in Poland are logistics and transport, financial services, and IT and data transmission. Also thanks to the growth of the Polish economy, the real estate market has attracted the attention of both domestic and foreign investors.
If you are considering starting a business in Poland and are looking for the most beneficial and profitable ideas, below are some of the most attractive sectors along with the advantages they can offer.
Polish IT and software development company The IT and software development sector in Poland is one of the most vital and robust industries with good fundamentals and further growth prospects. The Polish IT sector is considered to be the leader in the region, with the demand for qualified IT engineers constantly growing. The main reason and at the same time the advantage of starting an IT company in Poland is the huge human capital – highly qualified IT engineers.
Poland tends to excel when it comes to IT graduates – around 40,000 young people receive top-notch university education in IT and software development every year. The high quality of IT training is evidenced by numerous international programming competitions and rankings, such as B. Top coders. Polish IT specialists are in high demand not only locally but also abroad. Other advantages of starting an IT company in Poland are high product quality and low production and labor costs compared to other countries.
These are the main reasons why companies like Microsoft, Google, HP and IBM have opened their offices in Poland, and other foreign companies are located in all major cities of Poland. The two most popular cities for IT companies are currently Warsaw and Wroclaw. Although some of the world's largest technology companies have entered the Polish market, there are still many opportunities and prospects for IT and software development in Poland. One of the reasons why this sector is still very encouraging is the rapid development and new products such as mobile solutions, cloud computing and blockchain technologies. In addition, Poland offers certain state aids for investors, and special economic zones are being developed to provide investors with all the technology infrastructure.
Polish R&D company The R&D sector in Poland is considered one of the success stories among EU Member States. The main players in the R&D sector are the Polish Academy of Sciences together with other higher education institutions and individual R&D companies. The Polish government also encourages R&D activities by funding special programs through which numerous investment opportunities for R&D projects are available. Meanwhile, Polish universities educate highly skilled workers, which is relatively cheaper compared to other EU countries.
Research and development activities are progressing in all major sectors of the economy, especially in electronics, aeronautics, telecommunications and IT, biochemistry and biotechnology, pharmaceutical products and other innovative technologies. This sector is not only open to local entrepreneurs - national authorities also welcome and support foreign investment by opening numerous new science and technology parks specifically designed to facilitate the establishment of R&D units.
Polish automotive company The automotive industry is one of the most important industries in Poland and includes machine tools, petrochemicals, electrical machinery, automobile manufacturing and shipbuilding. There are several important factors why foreign entrepreneurs should be interested in this developed market. For example, the Polish automotive sector ranks second in the world in terms of manufacturing output. Similar to the previously mentioned industries, the automotive sector is also very attractive due to a large supply of highly skilled and relatively inexpensive labour. As a foreign entrepreneur, you have numerous opportunities to apply for subsidies from various EU programs and, under certain conditions, to be exempt from corporate income tax or to benefit from available government subsidy programs for foreign investors.
In terms of political and civil liberties, Malaysia ranks 2nd. Citizens in Malaysia experience partial freedom. While the majority of Malaysian citizens are able to exercise their free will to a certain extent, some political engagement may be restricted and certain sections of the population may be barred from certain freedoms or expressions of opinion. The companies of Malaysia are 2 in terms of economic freedom. The citizens of Malaysia are largely free in their economic decisions. While the government exercises some control over trade, citizens can still control their own finances and property. Corruption may exist, but it does not significantly impede economic growth or freedom. Malaysia's media ranks 4th in terms of journalistic freedom. In Malaysia, journalists are generally allowed to express a variety of opinions and there are a range of news sources. However, the government can criticize or reject certain topics or publications. This is considered satisfactory.
India's economy is calculated to be the third largest in the world in terms of purchasing power parity and the sixth largest in terms of nominal GDP. India is also one of the most important G20 economies with a growth rate averaging around 7% over the past two decades. In the last quarter of 2014, it became the fastest growing major economy in the world, overtaking the People's Republic of China. Although both countries showed very similar growth rates in 2016, China's growth is forecast to slow down, while the Indian economy's growth will recover to 7.2% in 2017. According to a PWC report, The World in 2050, India's nominal GDP could surpass that of the United States as early as 2040. The report also forecasts India's GDP to double to $5 trillion by 2025.
There are several key reasons for India's positive long-term growth prospects, including its relatively young population (with a correspondingly low dependency ratio), healthy investment and savings rates, and increasing integration into the global economy. The Indian economy is believed to have the potential to become the third largest in the world by the next decade and one of the two largest by mid-century.
Another reason why India's economy has grown faster than other countries is probably due to the increase in government investment, which incidentally also plays a significant role in the second fastest growing economy in the world - China. Meanwhile, slow-growing Western countries rely mostly on private rather than government investment.
India's service sector is one of the fastest growing in the world, growing at 9% every year since 2001. India has emerged as a major exporter of Business Process Outsourcing (BPO) services, software and IT services, making it the largest private employer in the country. India also has the fastest growing number of internet users in the world, showing the huge potential of e-commerce in India. Flipkart and Amazon are the best examples of e-commerce success in India. India is also the third largest startup hub in the world with more than 3100 tech startups in 2014-2015.
As India's economy continues to diversify and grow, agriculture's contribution to the country's GDP has steadily declined since 1951, but it still plays a significant role in the country's socio-economic development and is one of the largest sources of employment. India currently ranks second in the world for agricultural production.
Foreign direct investment is currently an important driver of economic development in India. Foreign companies are investing in fast-growing private companies to take advantage of lower wages and a burgeoning business environment. India is extremely attractive to foreign investors. In fact, in the first half of 2015, it overtook the US and China as the top destination for FDI, attracting US$31 billion compared to the US's US$27 billion and China's US$28 billion.
Among other things, the service sector has attracted a large part of foreign direct investment since 2011. The service sector includes finance, banking, insurance, non-financial business services, outsourcing, research and development, courier services, and technology testing and analysis. During FY 2014-15, the service sector attracted US$3.25 billion, representing 17% of total FDI.
The services sector is followed by construction development (new housing, housing, urban development and infrastructure) with FDI worth US$2.89 billion, telecommunications sector (paging, mobile and basic telephone services) with US$2.57 billion and computer software and hardware with foreign direct investment worth US$2.20 billion in the same period.
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Thu May 30, 2024 5:28 pm
