Taxpayers, especially startups, need to be aware of the tax implications of transferring intellectual property ("IP") abroad. Such transferral may result in unexpected tax bills, and it is advisable to seek tax advice before engaging on cross-border ventures. In terms of section 49A of the Income Tax Act 58 of 1962, a “royalty” means any amount that is received by or accrues in respect of- a) the use or right of use of or permission to use any intellectual property as defined