IP & TAXES

Because your IP represents a collection of assets, tax implications can arise.

IP assets can trigger numerous tax-related issues such as:

• income tax
  
  
• capital gains tax
  
  
• tax deductions
  
  
• depreciation
  
  
• trade mark taxation
  
  
• special tax write-offs
  
  
• withholding taxes—both local and international
  
  
• GST
  
  
• stamp duty.

Many of the tax implications will not apply to your business, but it is important to talk to your accountant if you intend to sell or license your IP. It is also very important to get this advice early, as there can be implications depending on who owns the IP. For more information, see the Australian Taxation Office website at www.ato.gov.au.

Ultimately your commitment to your IP assets depends on how important they are to your business success. But don’t forget, in planning for your business’ growth, what might seem unimportant today might be worth millions of dollars to you in the future. That’s why you should be IP smart from the start.