Royalty means the payment that the trademark owner receives for providing third parties with a license to use the trademark.
The owner of the trademark is quite often a non-resident from a country with minimum taxation. As a result, the tax rates lower than in Ukraine are imposed on the money, which he/she receives in the form of royalties. This allows saving on taxes. It is only important to ensure that, from the point of view of the Ukrainian tax legislation, the payment of royalties to a certain country can be defined as the payer’s expenses, otherwise the royalties shall be paid from the profits.
Payment of royalties shall be made under a license agreement, which shall be drawn up by competent lawyers. Only in this case, the use of the trademark and payment of the royalties will not cause disputes between both parties, and also will not cause inspections and claims on the part of the fiscal authorities.
Effectively closed projects in intellectual property by lawyers (records starting from 15th August 2023):
Import of Counterfeit Goods into Ukraine Prohibited (July 2025).
Counterfeit Goods Stopped at Kyiv Customs (December 2025).
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