Multi-disciplinary collaborations come in all shapes and sizes. Especially projects which have a longer life-span, projects whereby one or more of the involved parties are reimbursed (monetary or in kind) for their contribution, periodically recurring projects and/or projects where R&D activities are being conducted, are of interest.
Topics which should be addressed in setting up the collaboration to ensure maximum performance for each of the participants(and in order to mitigate unwelcome risks) include VAT, (Corporate) Income Tax, and Wage Tax aspects . As an example, one may think of the following issues.
Do we structure the collaboration as a partnership or as a legal entity? In which way can we fund and/or finance the collaboration? Do we finance the collaboration for instance by way of a grant, a (profit participating) loan or with equity asa (silent) participant? In all of these matters one should pay special attention to the relevant tax aspects..
Next to this, there may also be some tax opportunities in structuring the collaboration. As an example, collaborations aimed at the development of new products and services may qualify for a wage tax credit in respect of R&D activities conducted. Furthermore, profits derived from qualifying intellectual property rights that have been developed on the basis of these R&D activities will – if certain conditions are met – be taxed at a reduced effective corporate income tax rate of 7%.
Please contact your trusted adviser with Loyens & Loeff should you have any questions or should you like to discuss the tax aspects in respect of a specific collaboration in more detail.