Ngā pekanga Branches - Inland Revenue Royalties - as there is only one legal entity, it is not possible to allocate legal ownership of intangible rights to any particular part of the single enterprise However, if a third party charges a royalty for the specific use of intellectual property by the PE, then this cost may be allocated accordingly
Cant touch this! ATO releases long-awaited guidance on software . . . Under new guidance from the Australian Taxation Office (ATO) on software and royalties, a broad range of payments for access to software under software distribution arrangements could be characterised as royalties attracting withholding tax obligations for Australian distributors
Departmental Interpretation And Practice Notes - No. 22 (a) The rights conferred by registration of trade marks are territorial Section 15(1)(b) had no application on royalty receipts paid for the use of trade marks registered outside Hong Kong in respect of sales outside Hong Kong
TA 2018 2 | Legal database - Australian Taxation Office Our concerns include whether intangible assets have been appropriately recognised for Australian tax purposes and whether Australian royalty withholding tax obligations have been met
Undivided payments for goods and services involving a royalty . . . - PwC payment relates to an intangible right such as the use of know-how or trademarks There may be a variety of possible consequences for taxpayers, including: the retrospective application of royalty withholding tax with an unlimited amendment period denial of previously claimed deductions on royalties paid
Australian Taxation Office Continues Its Focus on Intangibles In draft Taxation Ruling TR 2024 D1, released Jan 17, the Australian Taxation Office takes a wide view of when royalty withholding tax applies to payments made to foreign copyright owners for intellectual property rights This view is based on a broad interpretation of when there is “use” of IP
Income Tax - Meaning of ‘Royalties’ - BDO Under the draft ruling, the ATO has formed a view that certain receipts in respect of software (outside of its physical packaging where available) are considered receipts for intangible intellectual property, and therefore should be considered a royalty payment
Tax Insight - New Limits on Deducting Payments Involving Intangibles . . . In August 2022, Treasury released a Discussion Paper outlining the design of, “a new rule limiting MNEs’ ability to claim tax deductions for payments relating to intangibles and royalties that lead to insufficient tax paid ” (This Paper is examined in more detail in our Tax Insight available here )
Intangibles: Key tax risks for multinational groups Recent developments and government announcements have highlighted the need for multinational groups to consider their arrangements with intangibles in order to prepare for and manage revenue authority scrutiny
Interest, dividends, royalties and MIT payments Royalties Royalties are generally payments made by one person for the use of rights owned by another person They may be periodic, irregular or one-off payments Royalties also include payments or credits of any kind in return for: the use of, or the right to use