 With such IP, Microsoft can additionally charge Microsoft Germany $95 in IP royalty payments on each copy of "Microsoft Office", ensuring that its German profits are zero.The $95 is paid to the location in which the IP is legally housed.Microsoft would prefer to house this IP in a tax haven, however, higher-tax locations like Germany do not sign full tax treaties with tax havens, and would not accept the IP charged from a tax haven as deductible against German taxation.