Royalty and Fee for Technical Services (FTS) under DTAAs

Royalty and Fee for Technical Services (FTS) under DTAAs

Technology, connectivity, and intellectual property being central to the globalized services-led world of modern business, royalty payments and fees for technical services (FTS) are a routine but significant transaction items for organizations today. They also involve many complexities of cross border Intellectual Property Rights (IPR) such as whether and how they are covered within the Double Tax Avoidance Agreements (DTAAs) with countries, how terms like ‘FTS’ or ‘copyright’ are defined, the heads under which services, payments and incomes are to be characterized, and so on. And that is only naming a few among many complexities!

At MBG Corporate Services, our experts are experienced and well versed in these complexities and are able to guide you through the process with:

  • Advice on what constitutes Royalty and Fee for technical services (FTS) under the GCC Income Tax Laws and its interplay with Double Tax Avoidance Agreements (DTAAs)
  • Advice on Withholding tax (WTH) obligations
  • Advice on the Dos and Don’ts to avoid Royalty and FTS being connected with Permanent Establishment (PE), wherever possible
  • Advice on lower tax rates under DTAAs wherever applicable, and possible exemptions thereof

What can we help you achieve?

Stay one step ahead in a rapidly changing world and build a sustainable future with us.

Get a quote

Explore more Customs and International Taxation services:

Economic Substance Regulations (ESR) Compliance

Global Mobility and HR Tax

ESR Review & Consistency Advice – UAE & Bahrain

Withholding Tax (WHT) Advisory

ITR Review and Filing

Master File Compliance

Tax Retention Advisory (KWT QAT)

Dividend Interest Advisory under DTAAs

Tax Residency Advisory

Foreign Tax Credit (FTC) Advisory

Zakat Advisory

Domestic Tax Advisory

MnA Tax – Pre Deal

MnA Tax – Deal Implementation

MnA Tax -Post Deal

Digital Tax Advisory

Family Trust Set up Advisory

Structuring Advisory

CbCR filing & advisory

Customs Health check

Transfer Pricing Strategizing international Transfer Pricing

Permanent Establishment (PE) Advisory

Advisory on Double Tax Avoidance

Tax Residency Certificate

Customs Registration

Assistance in Customs Refund

Customs Exemption Advisory

Free Trade Agreement Analysis Services