This rule defines royalties as amounts from the sale, lease, or grant of intellectual property rights. It outlines the tax treatment for concession rights under various scenarios. For entities submitting tax declarations, 1.5% of concession rights are accepted as head office expenses, while specific contracted costs require inspection. For hotel activities, 15% is accepted. In cases of non-submission, rights are calculated in full per the contract. The rule also addresses entities under double taxation agreements, joint ventures with Kuwaiti companies, and exceptional cases requiring Tax Department consultation.