1. International Licensing from Ireland Dec 01, 20141

2. Contents Who we are Facts about Ireland Who licenses out of Ireland? The Double Irish What you can still do

3. TippMcKnight is a full service law firm providing legal and tax advice to businesses and private individuals The office is located in the heart of Dublin, in the business district It was set up by two experienced solicitors who for many years were partners in major Irish law firms Who we are

4. International approach The firm is well connected with several Irish and international trade organisations, e.g. the International Fiscal Association (IFA), the Ireland- Spain Economic Association and the Ireland-France Chamber of Commerce Clients can be advised in English, German and French TippMcKnight has established a wide international network of contacts and an international client base

5. Recent significant deals The acquisition of an Irish resident group of companies for € 4.5 million Advising a major Irish public company on data protection issues The set-up of an Irish travel company The transfer of employees to a significant Irish client from another business Drafted international distribution agreements for a pharmaceutical company for 55 countries Completed Irish aspects of a significant international software acquisition

6. Facts about Ireland EU Member State plus Eurozone Membership: International airports at Dublin, Shannon, Cork, Knock and Kerry Less than 7 hours from New York, about 1 hour from London and 2 hours from Frankfurt Highly qualified employees available in ICT, life sciences, pharmaceuticals, new media, biotechnology and green energy Common law legal system Business friendly environment at all levels

7. 12.5% Corporation Tax on trading income also applying to active licensing 25 % for passive non-trading income, e.g. rental income The rate of Capital Gains Tax is 33% Ireland has a wide network of Double Taxation Treaties, currently 72 treaties, of which 68 are in effect 20% Withholding Tax on royalties but not where recipient is in a treaty countries which taxes such royalties Ireland is on the OECD white list for tax compliant jurisdictions Various Tax Incentives for companies to choose Ireland as a business location: ‐Favourable Intellectual Property Regime ‐R&D Tax Credit System ‐Tax relief for Start-up companies ‐Attractive Holding Company Regime Irish Taxation

8. Who licenses out of Ireland?  9 of the top 10 global software companies  9 of the top 10 pharmaceutical corporations  10 of the top 10 “born on the internet” companies  9 of the top 10 US ICT companies  The top 3 global enterprise software companies  4 of the top 5 IT service companies  15 of the top 20 global medical technology companies

9. The Double Irish This tax scheme hit the headlines last year. Condemned by Obama and caused red faces in Ireland and with many multi national corporations using Ireland. The scheme is used widely in connection with cross border licensing. Essentially the scheme in its most aggressive form involves the use of an Irish registered trading company and a second Irish registered company which is generally resident in a tax haven or qualifies as stateless. Scheme no longer available unless the second company is tax resident in a treaty country Existing schemes will be phased out by 2020.

10. What you can still do Ireland is still a good country to locate IP. Ireland is working on the creation of a “knowledge development box” system. No legislation has yet been published but the knowledge development box is expected to be at least as advantageous as similar schemes in other countries.

11. Practice Areas

12. Ursula Tipp is a founding partner of TippMcKnight Solicitors. She is the President of the Ireland Spain Economic Association, Director and Council Member of the Ireland France Chamber of Commerce, the Belgium Luxembourg Chamber of Commerce, the International Fiscal Association, the Institute of Directors and the Irish - US Council. Ursula is a Lecturer in International Taxation and Cross Border Trade and Litigation at National University of Ireland Maynooth and regular commentator on radio and TV. She is a regular guest speaker at legal and tax conferences in Europe and the United States. Ursula Tipp TippMcKnight Solicitors 41 Fitzwilliam Place, Dublin 2 Phone: +353 1 254 3432 Mobile: +353 86 1703405 Email: utipp@tipp-mcknight.com www.tipp-mcknight.com

13. Michael O’Connor is a founding partner of TippMcKnight Solicitors. Michael is a member and former Chairman of the Taxation Committee of the Law Society of Ireland and the Law Society’s representative of the Value Added Tax Subcommittee. He advises major companies on their tax and commercial issues. He is the correspondent for Ireland of the International VAT Monitor. Michael is a former Chairman of the International Fiscal Association, Ireland. Michael is the author of VAT on Property – made simple; a joint author of Stamp Duties for Business and Property and a frequent contributor of articles on taxation issues. Michael O’Connor TippMcKnight Solicitors 41 Fitzwilliam Place, Dublin 2 Phone: +353 1 254 3432 Mobile: +353 86 8592838 Email: moconnor@tipp-mcknight.com www.tipp-mcknight.com