Moving IP Back to the US Involves More Than Saving Tax Dollars

For years, US multinational companies routinely placed their global intellectual property in affiliates in low-tax jurisdictions outside the US. This may no longer become routine.

Recent changes in the US tax law have made the US a more attractive IP venue, particularly when weighed against the increasingly complex international tax environment. These changes include an expanded deduction on income from US exports, an exemption from the 15% global minimum tax on US profits, and the retention of the 21% US corporate tax rate.

Several US companies are considering migrating corporate IP to US affiliates using two possible strategies: transferring existing IP from offshore affiliates to US entities or placing all newly created IP in US affiliates. Each option poses certain IP challenges that tax and IP advisers can effectively manage only through close collaboration consider.