Spanish Court Rules Digital Tax is Illegal – The Hollywood Reporter.
international
23
Mar 11
South Africa: article on R&D tax incentive
See: http://www.moneywebtax.co.za/moneywebtax/view/moneywebtax/en/page259?oid=57207&sn=Detail&pid=1
Seems similar to UK R&D tax incentive, but possibly easier to spot qualifying R&D.
23
Mar 11
Israel: tax incentive for M&A in high-tech companies
See: http://www.jpost.com/Business/Commentary/Article.aspx?id=213334
Allows acquiring company to write off net value of IP in acquired company over 5 years – both acquirer and acquired must be companies incorporated and managed/controlled in Israel, so has very limited application globally.
23
Mar 11
Israel: article on tax incentive for investors in high-tech companies
See: http://www.jpost.com/Business/Commentary/Article.aspx?id=211342
Allows investor to write off investment up to NIS 5m over three years against income in Israel – open to foreign investors with Israeli income as well as Israeli investors.
22
Mar 11
Hong Kong: tax deductions for IP
IP tax changes in Hong Kong: the Inland Revenue (Amendment) (No. 2) Bill 2011, published on 25 February 2011, proposes
9
Dec 10
Ireland: RIP Patent tax exemption
Tuesday’s Budget in Ireland confirmed the information in the Irish National Recovery Plan 2011 – 2014 that the exemption from tax for patents has been abolished, with effect from 24th November 2010 (the date of publication of the National Recovery Plan).
11
Nov 10
US: Double Irish/Dutch Sandwich
Not an esoteric offering for lunch, but the tax structure used by Google et al that’s been the subject of comment and some disapproval in certain quarters. So what is it all about? Read on below …
First, some notes:
- I haven’t advised Google or any of the other companies that have been reported as using this structure, so I’m discussing this in general tems;
- this isn’t a new structure, it’s been around for years – but it’s recently hit the business headlines, so I thought I’d explain it here; and
- this structure only works for US-headquartered groups – it relies on some quirks of US tax law. It’s not something that a UK headquartered company could use to any real effect.
5
Nov 10
India: clear as …?
Just when you thought it couldn’t get more confusing … Following on from the post on the Microsoft case, I came across a Advance Ruling given to GeoQuest Systems BV (a Dutch company) by the Indian authorities in August.
Remember that the Delhi Tax Appeal Tribunal pretty much held that all software payments are royalties, and withholding tax needs to be deducted from payments, even if for shrink-wrap boxed software? Well, the GeoQuest Advance Ruling concludes that a payment for the licensing of special purpose software does not constitute a royalty – so no withholding tax on payments made from India.
The sound you hear is my head hitting the desk in confusion.
The Advance Ruling concludes that a payment for a software license does not fall within the parameters of a “royalty,” being a payment of any kind made for the use of, or the right to use, a copyright of a literary or scientific work.
Could the department dealing with Advance Rulings tell the Tax Appeal Tribunal that, please?
5
Nov 10
India: royalties – oh no, they aren’t; oh yes, they are
In an early start to the pantomime season, the earlier sensible decision on shrink-wrap software of the Bangalore Tax Appeal Tribunal appears to have been thoroughly ignored by the Delhi Tax Appeal Tribunal, which has held that payments received by Microsoft from end users in India through distributors for sale of Microsoft off-the-shelf, shrink-wrap, software, are taxable as royalties (and so are subject to Indian withholding taxes). In effect, the decision means that any sale of software to India should have tax withheld from the payment, no matter what form the software actually takes – that’s going to make quite a difference to some profit margins.
Oh, and tax treaties with India can’t apparently be relied on, according to the court.