Legal

Germany’s R&D Tax Credits: The Tax Credit For Research and Development

Germany is one of the last OECD countries that has given in and introduced tax incentives to stimulate the economy through research and development (R&D) activities. This article will discuss the different ways the R&D tax credit or Die Steuergutschrift Für Forschung Und Entwicklung benefits innovative companies operating within Germany.

Introducing R&D Tax Incentives in Germany

Right after the Covid-19 pandemic struck worldwide, the German government adopted a new law called the Research Tax Allowance, through which R&D activities are tax-privileged. On April 2021, the application process for the research allowance was finally completed. Company size and sector doesn’t matter so long as the projects involve R&D activities. This new research allowance has resulted to changes in the financing strategies for innovations, especially in international companies.

R&D tax credit is basically available for personnel expenses and fees for subcontracting related to any activity that depends on a technical discipline to improve a product, system, or process.

Germany’s new R&D Tax Credit at a Glance

Qualified Taxpayers –all taxpayers in Germany that are subject to limited or unlimited income taxation qualify for the allowance so long as they are not tax exempt. The bill, however, does not differentiate between partnerships, corporations, or sole proprietorships. Non-resident taxpayers or those that are not considered German residents but pay taxes can only qualify if they have enough nexus to Germany, e.g. a non-resident company that is permanently established in the country. The allowance is given regardless of the company’s profit situation. Realistically speaking, this means that profit-making taxpayers will be given a tax credit against their personal or corporate income tax. Loss-making taxpayers, on the other hand, will be given the allowance in full.
Qualified R&D Activities –R&D activities that qualify for the tax credits include fundamental research, industrial research, and experimental development within the bounds of EU regulations. These activities must have been done after January 1^st, 2020. Activities that focus only on market development or to improve production systems do not qualify.
Form of Conduct of R&D –qualified R&D activities may be performed in-house by the taxpayer/s themselves, and/or through contract research. Contract research can be funded if the contractor (affiliated company or third-party) is based in Germany or in any other member state of the EU/EEA. Regarding contract research, the new law is poorly drafted and, therefore, presents numerous major tax planning opportunities, especially in a cross-border context. In addition, R&D activities can also be done by a collaboration between one or more beneficiaries and at least one more company or institution for research and propagation of knowledge.
Qualified Expenses –the assessment base includes the wages that are subject to Germany’s wage tax and expense to secure the employee’s future (such as contributions to statutory pension funds). But these expenses only qualify to the extent the employees are involved and given control over the research and development activities in qualified R&D projects. For contract research, the assessment base includes 60% of the renumeration paid by the taxpayer to the contractor. Qualified expenses are limited to 2 million euros per company (group-wide limitation) and fiscal year.
Allowance Amount – the tax credit for research and development amounts to 25% of the eligible expenses. The total amount of research allowances and other state assistance granted for the R&D project may not go beyond 15 million euros per company (on individual basis) and for each R&D project over time.
Application –the research allowance application is done in two stages: first the taxpayer sends a technical request for the release of an R&D certificate proving that the R&D project is qualified. Next is the application of the research allowance itself. It must be submitted electronically to the local tax office. Note that this application must be supported by the documentation of qualified activities and expenses.
Mode of Payment –the research allowance will be decided upon by an assessment notice. It will be fully credited against the income tax determined in the tax assessment after submitting the application. In a loss-making situation, the research allowance will be completely paid out.

The secret to a successful application is that the company understand and allocates the expenses applicable to any product, or process improvement.

How to Plan Your Next R&D Tax Credit Claim

It’s possible to apply for the tax credit for research and development certificates and research allowance claims any time, but it is highly recommended that you do so during the year in real-time to avoid a last-minute rush. You can work with tax experts so you can get the most out of your research allowance while reducing the time you need to spend applying for it.

Below is a breakdown of the application steps for the R&D tax credits. Make sure you collect and submit all the necessary documents and information.

Review—this involves reviewing ongoing projects, current processes, project lists and tracking systems to make sure you completely understand your organization and its internal processes. You must present your technical and financial leads involving the tax credit for research and development and reviewing your current processes, tools and etc. From here, you evaluate which potential R&D projects and narrow down the list to the ones that are likely to qualify as R&D projects and activities.
Gather –next you gather information for the technical request for the issuance of the R&D certificate during the year. Your tax experts should work with you in collecting all the necessary information to support your request from a technical point-of-view.
Collect financial information –after that you collect all the financial information you need to support your research allowance claim, together with your financial leads. You collect costing information based on the qualified R&D activities and projects in itemized documentation showing eligible expenses on a project-to-project basis.
Prepare and Submit –once you have all the documents you need; you prepare and submit the technical request and research allowance claim in German after the information for both has been compiled and reviewed.
Assist –lastly, you provide assistance in any tax audit and appeal proceedings if your technical request for the R&D certificate and research allowance claim is challenged by the authorities.

Legal

Thai Court Amends Law to Allows Wives to Sue Husband’s Lovers

Thailand's Constitutional Court Allows Wives to Sue Husband's Lovers

Angry Thai Wife: File Image

Thailand’s Constitutional Court has changed the Civil Code will allow women to sue their husbands’ lovers, male or female. The Constitutional Court found on Tuesday that Section 1523 of the Civil Code breached Section 27 of the constitution, which safeguards Thais’ rights and liberties regardless of gender.

The court directed that the verdict be enforced within 360 days.

Section 1523 of the Civil Code states that husbands can sue their wives’ lovers, and wives can sue other women who publicly display an adulterous connection with their husband.

Keirov Kritteeranon, secretary-general of the Office of the Ombudsman, stated that the Ombudsman had previously urged the court to rule on the legality of Section 1523, which allowed wives to suit only female lovers.

Husbands can now sue their wives’ boyfriends regardless of gender, and there was no requirement for any public declaration of an adulterous connection, he claimed.

Once enforced, Tuesday’s Constitutional Court order, according to the Ombudsman, will correct this imbalance.

Thailand Amends Marriage Law

Meanwhile, Thailand is set to become the first Southeast Asian country to recognise same-sex marriage, after its marriage equality law was passed in the Upper House on Tuesday and is now on its approach to being promulgated before going into effect in the coming months.

LGBTQ+ advocates rejoiced as the Senate voted 130-4 to pass the bill on its final reading, with 18 abstentions. They hailed the development as a win in their long struggle for equal rights.

When the advocates who had gathered at parliament on Tuesday to witness the Senate’s final reading and vote on the measure heard the outcome, they burst out in cheers.

They next went to authorities House, where the authorities had planned a celebratory reception for them later in the day. They then went to the Bangkok Art and Culture Centre, where the party lasted until late at night.

Prime Minister Srettha Thavisin, who is on sick leave due to Covid-19, congratulated them via Zoom call from Government House.

The new law will allow any two people aged 18 or older to register their marriage and obtain the same advantages and rights as heterosexual couples. The bill refers to married couples as “two individuals” rather than “a man and a woman,” and changes their legal status from “husband and wife” to “spouses.”

LGBTQ+ people from any country can legally marry in Thailand. When the bill goes into force, foreign same-sex married partners will be eligible for a spousal visa.

The law will be sent to the government for approval before being presented to the monarch.

It will take effect within 120 days of its publication in the Royal Gazette, making Thailand the third Asian country to accept same-sex marriages after Nepal and Taiwan.

Senator Kamnoon Sidhisamarn, spokesman for the Senate’s special committee evaluating the proposed law, called it a victory for equal rights campaigners.

“There is no reason for the Upper House to disagree with the judgement made by the House of Representatives,” he told reporters. He was referring to the legislation’s passage in the Lower House prior to its submission to the Senate for approval.

The battle for same-sex marriage legislation began 23 years ago. Tunyawaj Kamolwongwat, a Move Forward Party list-MP, said that the law’s passage on Tuesday signified the beginning of a new chapter in Thai history.

Source: Bangkok Post

Court Upholds Israel’s Ban on News Agency Al Jazeera

Court Upholds Israel’s Ban on News Agency Al Jazeera

Legal

Thailand’s Senate Passes Landmark Marriage Equity Bill Legalizing Gay Marriage

Thailand’s Senate has approved a long awaited marriage equality bill on Tuesday, making the country the third Asian country to accept same-sex couples. The Senate approved the law 130-4 with 18 abstentions.

The marriage equality bill will be sent the palace for royal clearance. The marriage equality law takes 120 days to take effect after Royal Gazette publication.

LGBTQ+ advocates welcomed the proposal a “monumental step forward” because Thailand would be the first Southeast Asian country to legalise marriage equality. Thailand is popular with travellers due to its LGBTQ+ culture and tolerance.

“This would underscore Thailand’s leadership in the region in promoting human rights and gender equality,” the Civil Society Commission of marriage equality, activists, and LGBTI+ couples said.

Prime Minister Srettha Thavisin, who wore a rainbow shirt to commemorate Pride Month, joined thousands of LGBTQ+ revellers and activists in a Bangkok parade at the start of June.

The prime minister will open Government House to commemorate the bill’s passage. Pride supporters will march from Parliament to the prime minister’s office. Mr. Srettha, who has Covid-19, will join them online after taking several days off.

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai anticipates June’s Pride Month to create approximately 4.5 billion baht in economic cash flow.

Marriage Equity Bill

Pride Month in Thailand

On Saturday, Mr. Phumtham said the government under Prime Minister Srettha Thavisin is encouraging sexual diversity and working with the commercial sector to plan more Pride Month festivities to attract LGBTQ+ tourists.

He claimed it will increase the country’s trade potential by giving SMEs business expansion chances and adding soft power value.

Mr. Phumtham claimed Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, told him Pride Month celebrations will make Thailand a “pride-friendly destination” for LGBTQ+ Thai and global consumers.

This would help the country become a regional tourism hub under the government’s “Ignite Tourism Thailand” initiative to enhance tourism in 55 “worth visiting” provinces.

He added that such festivals will support downstream industries like event planners, food and beverage companies, hotels, and transport services and disperse cash to local areas. Mr. Phumtham stated Thailand’s Pride Month began in 1999. Bangkok, Chiang Mai, Phuket, and Chon Buri host parades, festivities, and campaigns.

The Tourism Authority of Thailand (TAT) expects approximately 860,000 people to attend this year’s festival and contribute at least 4.5 billion baht for the economy. LGBT Capital estimates that the world’s LGBTQ+ population has US$4.7 trillion in purchasing power and Thailand’s sexually varied population has US$26 billion.

LGBTQ+ rights in Thailand are improving, but there’s still much to do. The LGBTQ+ community in Thailand is notably strong in Bangkok and Pattaya.

Strong legal recognition allows transgender people to change their names and titles. Many LGBTQ+ couples lack legal rights since same-sex marriage is banned.

Marriage Equity Bill

LGBTQ+ rights in Thailand

Thailand is becoming more accepting despite these difficulties. LGBTQ+ rights are gaining favour. Activists want legal changes to guarantee equality.

Pride parades are becoming increasingly visible, demonstrating diverse acceptance. While challenges remain, LGBTQ+ rights in Thailand are improving as awareness and acceptance expand.

Legal

Protecting Your Designs: Intellectual Property Rights in the Jewelry Manufacturing Industry

Intellectual Property jewellery

The jewelry manufacturing industry is a vibrant and highly competitive sector where creativity and innovation are paramount. Designers invest significant time, effort, and resources into crafting unique pieces that appeal to consumers’ tastes and preferences. However, this industry faces a persistent challenge: the protection of original designs from imitation and unauthorized use.

Intellectual property rights (IPR) play a crucial role in safeguarding jewellery designs, ensuring that creators receive recognition and financial benefits from their work. This article delves into the various forms of intellectual property rights pertinent to the jewelry manufacturing industry and offers insights on how designers can protect their creations.

Understanding Intellectual Property Rights

Intellectual property rights are legal mechanisms that grant creators exclusive rights to their inventions, designs, and artistic works. These rights encourage innovation by providing creators with the means to control the use of their creations and to benefit financially from them. In the context of jewelry design, the most relevant forms of IPR are copyrights, trademarks, patents, and design rights.

Copyrights

Copyright protection extends to original works of authorship, including artistic creations such as jewelry designs. Under copyright law, the designer of a piece of jewelry automatically acquires the exclusive right to reproduce, distribute, and display the design upon its creation. This protection does not require registration, although registering the copyright with the appropriate governmental body, such as the U.S. Copyright Office, can provide additional legal benefits and evidence of ownership.

For jewelry designers, copyright protects the aesthetic aspects of a piece, such as the specific design, patterns, and artistic expressions. However, it does not cover the functional elements or the materials used. The duration of copyright protection varies by country, but it typically lasts for the life of the creator plus an additional 50 to 70 years.

Trademarks

Trademarks protect symbols, names, logos, and slogans that distinguish goods and services in the marketplace. For jewelry manufacturers, a trademark can cover the brand name, logo, or even a unique product line name.

Registering a trademark with the appropriate authority, such as the United States Patent and Trademark Office (USPTO), provides nationwide protection and the exclusive right to use the mark in connection with the specified goods or services.

A strong trademark helps consumers identify and differentiate a brand’s products from those of competitors, fostering brand loyalty and reducing the risk of confusion in the marketplace. It also provides legal recourse against counterfeiting and unauthorised use of the brand’s identity.

Patents

Patents protect new inventions and technical innovations. In the jewelry industry, this could include innovative manufacturing processes, unique mechanisms for adjustable or interchangeable jewelry, or novel materials and techniques. A patent grants the inventor the exclusive right to use, make, and sell the invention for a limited period, usually 20 years from the filing date of the patent application.

Obtaining a patent involves a rigorous process of proving that the invention is novel, non-obvious, and useful. For jewelry designers, the primary benefit of patent protection lies in safeguarding their innovative techniques and mechanical features, which can provide a competitive edge in the market.

Design Rights

Design rights specifically protect the visual appearance of a product, including its shape, configuration, pattern, and ornamentation. These rights are particularly relevant to the jewelry industry, where the aesthetic appeal of a product is a key selling point. In many jurisdictions, design rights must be registered to be enforceable, though some countries offer unregistered design rights that provide limited protection.

Registering a design right involves submitting detailed representations of the design to the relevant authority, such as the European Union Intellectual Property Office (EUIPO) for protection within the EU. Registered design rights typically offer protection for up to 25 years, subject to renewal fees.

Steps to Protect Jewelry Designs

Document Your Designs: Maintain detailed records of your design process, including sketches, prototypes, and finished pieces. This documentation can serve as evidence of originality and ownership in case of disputes.
Conduct Searches: Before launching a new design, conduct thorough searches to ensure it does not infringe on existing intellectual property. This can prevent legal issues and costly disputes.
Register Your IP: Where applicable, register your copyrights, trademarks, patents, and design rights with the appropriate authorities. Registration enhances protection and provides legal advantages in enforcing your rights.
Use NDAs and Contracts: When working with manufacturers, suppliers, and collaborators, use non-disclosure agreements (NDAs) and detailed contracts to protect your designs and outline the terms of use. ( Check out EJ: A Jewelry Manufacturer with NDA’s.
Monitor the Market: Regularly monitor the market for potential infringements. This can involve online searches, attending trade shows, and staying informed about competitors’ activities.
Take Legal Action if Necessary: If you discover an infringement, take prompt legal action to enforce your rights. This may involve sending cease-and-desist letters, pursuing litigation, or seeking alternative dispute resolution methods.

Challenges and Considerations

While intellectual property rights offer significant protection, there are challenges and limitations to consider. The cost and complexity of obtaining and enforcing IPR can be prohibitive, especially for small designers and startups. Additionally, the global nature of the jewelry market means that protections obtained in one jurisdiction may not be recognized elsewhere, necessitating international strategies for comprehensive protection.

Moreover, the fast-paced nature of fashion and jewelry trends can make lengthy registration processes impractical for certain designs. In such cases, relying on unregistered design rights or focusing on brand protection through trademarks may be more viable strategies.

Conclusion

Intellectual property rights are a vital tool for protecting the creativity and innovation that drive the jewelry manufacturing industry. By understanding and strategically utilizing copyrights, trademarks, patents, and design rights, designers can safeguard their creations, enhance their competitive edge, and ensure they reap the financial rewards of their ingenuity. As the industry continues to evolve, staying informed about IPR and adapting to emerging challenges will be crucial for sustaining success in the dynamic world of jewelry design.