By Laure-Lise GINER, Esq., Partner<\/p>\n\n
Optimizing the compensation of an executive at a company subject to corporate income tax is a significant challenge given the cost it represents for both the company and the executive. For example, the compensation of the president of an SAS is subject to a contribution rate of approximately\u202f <\/span>65% of his net pay<\/span><\/b>\u202f(this rate varies depending on the amount of compensation), to which must then be added\u202f<\/span>income tax at a progressive rate of up to 45%<\/span><\/b>.<\/span> <\/span><\/p>\n\n However, in companies in the digital sector, executives often work on developing software applications, on creations resulting from innovative methodologies (training, processes, concepts), new designs, or original intellectual creations.\u202f<\/span>This work by the executive may then allow them to claim copyright, granting them favorable tax treatment to increase their net income by reducing tax and social security costs.<\/span><\/b> <\/span><\/p>\n\n In fact, whenever a person, acting as an individual, creates original works protected by intellectual property rights (software, methodologies, concepts, designs, etc.) or files for industrial property rights (trademarks, industrial designs, patents), these works belong to that person as part of their private assets. The income received through\u202f <\/span>Copyright infringement takes many forms:<\/span><\/b> <\/span><\/p>\n\n -\u202f\u202f\u202f\u202f\u202f\u202fIncome derived from the creation of a trademark registered by the executive and used by the company<\/span> <\/span><\/p>\n\n -\u202f\u202f\u202f\u202f\u202f\u202fIncome from his work as an independent software developer<\/span> <\/span><\/p>\n\n -\u202f\u202f\u202f\u202f\u202f\u202fIncome derived from \u201coriginal\u201d creative, conceptual, or design work<\/span> <\/span><\/p>\n\n If the company founded by the executive, or third-party companies, wish to use these services or original works owned by the executive, the executive could receive copyright royalties in exchange for such use, known as \u201c\u202f<\/span>license\u202f<\/span><\/b>\u201d or \u201c\u202f<\/span>concession\u202f<\/span><\/b>.\u201d<\/span> <\/span><\/p>\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" By Laure-Lise GINER, Esq., Partner Optimizing the compensation of an executive at a company subject to corporate income tax is a significant challenge given the cost it represents for both the company and the executive. For example, the compensation of the president of an SAS is subject to a contribution rate of approximately\u202f 65% of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[93],"tags":[104,107,105,106],"class_list":["post-20049","post","type-post","status-publish","format-standard","hentry","category-corporate-taxation","tag-copyright","tag-executive-compensation","tag-income-tax-2","tag-optimization"],"yoast_head":"\nBenefits of Income from the Licensing of Copyrights <\/h3>\n\n
Creation, Concept, Design, Branding\u202f <\/mark><\/h3>\n\n
Taxation<\/th> Tax Base<\/th><\/tr><\/thead> Income Tax<\/td> Income tax on 66% of revenue (micro-BNC tax regime for revenue up to 72,500 euros in Year -1 and\/or Year -2 Social Security Contributions<\/td> Social security contributions for self-employed individuals (overall rate between 30% and 35%). Software <\/mark><\/h3>\n\n
Taxation<\/th> Tax Base<\/th><\/tr><\/thead> Income Tax<\/td> Fixed rate of 10% <\/td><\/tr> Social Security Contributions<\/td> Authors’ contributions, generally below 17.2%\u202f <\/td><\/tr><\/tbody><\/table><\/figure>\n\n Points to Watch For <\/h3>\n\n