There are many complexities attached to royalty payments and fees for technical services (FTS), a common payment item for modern businesses in this technology and IP-driven global marketplace of today. These include trans-border Intellectual Property Rights (IPR), whether and how they are covered within the Double Tax Avoidance Agreements (DTAAs) between nations and economies, the precise definition of ‘FTS’, ‘copyright’ and other related terms, the categories under which services, payments and earnings must be characterized, and so on.
Our teams at MBG Corporate Services have the required experience and expertise to handle these complexities for our clients. We support you through:
- Advice on what constitutes FTS under the GCC ITLs and how they interplay with DTAAs
- Counsel and guidance on Withholding tax (WTH) obligations
- Guidance, where possible, Royalty and FTS avoidance as part of having a Permanent Establishment (PE) status
- Counsel on exemptions and lower rates under DTAAs wherever possible
