Patents, copyrights, royalities

An offshore company may acquire the right to use material protected by copyright, licenses or patents. The company will accumulate royalties paying only the expected withholding tax. In some jurisdictions, this withholding tax is close to or equal to zero, so that all rights deriving from the exploitation of patents or copyrights can be advantageous: due to international agreements against double taxation, the company owner who receives royalties may also avoid a double tax on himself.