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In knowledge-based economies, an increasing share of corporate market value is generated from intellectual property (IP). Luxembourg is aware of the challenges of IP management, and is committed to an environment that supports IP creation and development, which is in compliance with EU law and international agreements. Among Luxembourg's unique and specific benefits for IP creation and management is an 80% tax exemption on income generated from the commercial use or capital gains from the sale of IP, along with complete exemptions of IP from net worth taxes. Qualifying property includes software copyrights, patents, trademarks, models, designs, and domain names. Net income is defined as gross royalty income received by the taxpayer minus expenses accrued in connection with the income, such as annual amortizations and impairments. Capital gains on IP benefit from the 80% exemption under similar rules. And there is more. R&D expenditures are fully deductible if no commercial results are forthcoming.