Scenarios where one intellectual property (IP) asset is acquired to create or integrate into another IP asset can raise important considerations. Under the UAE’s corporate tax regime, acquisition costs may reduce the portion of income that qualifies for the 0% tax rate, prompting a review of whether this treatment should apply when IP assets are merged or embedded into a unified functional asset.
Should this potentially less favorable tax treatment apply in cases where one IP is incorporated into another? Practical examples illustrating this issue are available on slides 2 and 6-8, while slides 3-5 provide rules to guide these interpretations. Additionally, the Irish Tax and Customs authorities’ perspective on similar provisions offers insight into potential risks and opportunities.
An important consideration from the tax authority’s stance is the assertion that “much software development does not qualify as R&D activity.” This interpretation is crucial for companies to factor into their tax planning and compliance.
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Andrey provides legal support in taxation projects that involve tax advice, support in tax disputes and in all surrounding issues that may affect the implementation of tax advice. This includes economic substance, corporate and civil issues pertinent to tax, mergers and acquisitions of companies with multinational corporations being involved, and in major investment projects. Andrey’s expertise in local tax legislation and the interpretation of local tax regulation have been a notable feature of his support for clients that have expanded their business to such markets as India, China, Mexico, Venezuela, Argentina, Brazil, Paraguay, Peru, Italy, Hungary, Kazakhstan, Belarus, Armenia, Ukraine, Vietnam, Sri Lanka, Laos, and Türkiye.
Andrey has 35 years of experience in tax consulting and tax dispute resolutions, while for more than 20 years he has managed a group consisting of more than 10+ tax lawyers. Andrey also covers personal health care pro bono practice. This part of his professional activity consists of advising patients on medical law, assisting patients in obtaining medicines and medical devices, and providing legal support to patients in disputes with health authorities regarding the provision of expensive medicines. Andrey has been ranked in Chambers Europe 2020 and Chambers Global 2015, while he was marked out by the Pravo-300 2022 directory in band 1 in tax advice and tax litigation. He was recognized by Best Lawyers 2021 and 2022.
