Abstract

In this contemporary knowledge-based economy, Intellectual Property (IP) are useful economic assets and motivation for innovation. Global businesses rely heavily on IP taxation for influencing innovation levels, investments and promoting economic growth. This study investigates into IP Rights (IPR) taxation systems across European Union (EU), United States of America (USA) and India while it also draws connections to commerce, trade and laws . The research adopts a comparative legal policy analysis which studies statutory provisions, international taxation contracts and economic footprints of IPR taxation. The assessment includes analysis of essential tax components including royalties, patent box regimes, IP transaction’s capital gains taxation and international tax issues concerning Base Erosion and Profit Shifting (BEPS) . The study examines how different jurisdictions both agree and differ in their operations to present positive and negative impacts of their methods. This research exhibits that world-leading economies- the USA and EU have implemented IPR taxation approaches to support research and development (R&D) along with attracting capital investments but India stands in a developmental stage which balances its home technology development against worldwide market competition. The study reveals that the Patent Box System of the EU promotes innovation, the Tax Cuts and Jobs Act with GILTI (Global Intangible Low-Taxed Income) and FDII (Foreign-Derived Intangible Income) provisions of the USA aims to fight profit tax evasion and simultaneously stimulate domestic IP growth. The marks of modern tax policy within India incorporate strengthened transfer pricing oversight through regulations that protect both international standards and national technological advancement and innovation. The research enhances current discussions about tax policies concerning IP through studying various tax systems’ impact on innovation systems. This research paper is pressing priority for enabling developing economies and will form a strong edifice in aiding researchers, policy makers and nations in formulating and adopting premier IPR tax regimes leading to robust innovation.

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