Intellectual Property & tax: Domain Names


As an internet business one of your most important and valuable assets could be your domain name.   The tax-characterisation of domain names is uncertain as it is not settled whether domain names are intellectual property such as trade names or trade marks. 

Normally an asset having a long term economic useful life would be capitalised and amortised over the period of its use.  However, as it is not certain whether domain names are intellectual property some tax authorities argue that these are contracts for services with an unlimited life so that no deductions are available.