Java – Vavai

Mudah Belajar Java Bersama Vavai :-)

Tax Clause In License Agreement

By • Apr 13th, 2021 • Category: Uncategorized 23 views Cetak Artikel Ini Cetak Artikel Ini

To address this issue, the supply contract should include a provision for the inclusion in the price of products of licence fees for the use of trademarks. The licensing agreement should indicate methods of using the mark other than importing goods (for example. B, the use of trademarks on documents relating to the marketing of goods, proposals for the sale of goods, advertisements, billboards, advertising and the internet, including domain names). Thus, royalties paid under the price of imported goods are charged for the importation and sale of goods imported into Russia. Royalties for other types of brand use are paid under the licensing agreement. This solution allows the parties to exclude royalties from the licensing agreement for the customs value of imported goods. Therefore, the exploitation of intellectual property by the taker does not generate operating income for a certain period of time without payment of royalties under the unpaid licensing agreement, provided that the parties have extended the unpaid relationships for the period for which the taker then paid royalties. The “unilateral” wording cited at the beginning of this play takes a different approach. It requires the licensee to “extrapolate” the amount of the payment in “gross” so that, after deducting the tax, it is the same amount as originally agreed. With this approach, the risk is passed on to the licensee. The inclusion of licence fees in the customs value of imported goods is particularly difficult when royalties are set as a fixed amount in the term licence agreement. The registrant cannot know in advance how many goods will be imported during this period.

Larger problems can be caused by licensing agreements that determine the licence rate as a percentage of revenue. Upon importing the goods, the registrant cannot know the final sale price or, therefore, the exact amount of the royalties. In Russia, the situation is compounded by the fact that customs regulations do not provide a clear mechanism for the collection of tariffs on deferred customs value (i.e. in a situation where the final selling price of imported goods is not known at the time of importation). In this regard, the registrant generally contains in the delivery contracts a provision that the price of the goods delivered includes a licence fee for the right to use the marks affixed to the imported goods. When the Russian customs authorities ask whether the licence fees on the marks have been included in the customs value of the imported goods, the registrant generally replies in the affirmative with regard to the price structure of the delivery contract. This aspect of the double taxation agreement must be taken into account by the parties to a licensing agreement, or risk creating serious uncertainty in the relationship. There will be no problems if the Double Taxation Convention provides for the full payment of tax in the country of the licensee (as in the treaties between Russia and the United States, the United Kingdom, Germany, France and Switzerland). However, Russian double taxation agreements with a large number of countries (including China, India, Japan, Spain and South Korea) provide for the possibility of imposing a 5%-15% royalty tax in the country of the licensee.

In most of these countries, including Russia, the collection of this tax is done by withholding tax. Therefore, in this case, the licensee should withhold the tax at the corresponding rate and transfer it to the tax authorities of his own country. As a result, the amount received by the licensee is less than the amount specified in the contract. Therefore, if the parties do not address this issue in the treaty, it could lead to conflict. When I am faced with a clause like this, I have always thought that withholding tax should satisfy the tax debt of the IP seller, and if they were dissatisfied, they could include it with the taxman.

Cetak Artikel Ini Cetak Artikel Ini

is Masim "Vavai" Sugianto, Professional IT. Tinggal di Bekasi, bekerja di Jakarta. Aktif pada Komunitas OpenSUSE Indonesia. Berminat pada dunia Open Source dan pengembangan program Java. Keseharian dapat dimonitor pada Blog Pribadi
Email this author | All posts by

Comments are closed.