1. Know-how

A technology qualifies as know-how under the following conditions:

  • it is a fact, set of data
  • it is technical, economic or organizational knowledge, solution, experience
  • it is related to an economic activity
  • it is confidential - not in the public domain - not easily accessible to professionals
  • it derives value from its confidentiality
  • it is kept confidential by the right holder (the company) as normally expected
  • it is recorded in a discernible form, i.e. it is put into writing, which, if someone else reads it, they can understand it, they can apply it

2. Intangible assets, including intellectual properties

If they verifiably qualify as protected knowledge, i.e. the company has appropriately documented the above and they meet the following accounting requirements, then they can be capitalized as intellectual property:

  • they are available to the company, i.e. they are under the control of the company
  • they serve the operation of the company, i.e. they generate future benefits for the company, this is the assumption
  • their market value can be reliably determined

3. Capitalization as intellectual property

If the above is met, the intellectual properties can be capitalized in the accounts.

  • if they are one’s own production, they should be shown in the books at “actual direct cost”. Eligible costs include costs that are:
  • incurred during production;
  • demonstrably closely related to production (this also means documentation);

4. Registered intangible assets

Know-how cannot be submitted for registration because under the Corporate Income Tax Act it carries no eligibility for royalty.