The Resource Income tax withholding and reporting obligations on cross-border payments

Income tax withholding and reporting obligations on cross-border payments

Label
Income tax withholding and reporting obligations on cross-border payments
Title
Income tax withholding and reporting obligations on cross-border payments
Creator
Subject
Language
eng
Summary
Facts and questions: 1. HCo is a Host Country corporation that is part of a multinational group of corporations. FCo, a Country X affiliate of HCo, seconds Exec, an individual Country X tax resident, to HCo to work in HCo's Host Country offices for the four-month period from September 1-December 31 of Year 1. Questions: (1) What are HCo's income tax withholding and reporting obligations to Host Country with respect to compensation it pays to Exec during this period? ; (2) Do those obligations differ depending on whether Host Country has an income tax treaty with Country X? Facts: 2. HCo's ultimate parent company, FHoldco, which is a tax resident of a country with which Host Country does not have an income tax treaty, licenses worldwide rights to certain valuable intellectual property to SisterCo, a tax resident of Country X, which has an income tax treaty with Host Country that exempts royalties paid to Country X residents from Host Country tax. Under the license agreement, SisterCo is obligated to pay FHoldco 95 percent of any royalties that SisterCo receives from sublicensing of the intellectual property to HCo for a royalty based on HCo's sales associated with such intellectual property. Questions: (1) What are HCo's income tax withholding and reporting obligations with respect to its payment of royalties to SisterCo with respect to the sublicense? ; (2) What are SisterCo's Host Country income tax withholding and reporting obligations - if any - with respect to any royalties it pays to FHoldco attributable to HCo's Host Country exploitation of the intellectual property? Facts: 3. HFund is a partnership organised and having offices in Host Country that is engaged in investing and trading in stocks and securities issued by Host Country corporations on behalf of its partners, who consist of investors some of whom are residents of Host Country and some of whom are residents of foreign countries. HFund borrows funds from Lender for a below-market fixed interest rate along with an "equity kicker" tied to HFund's performance. Lender is a partnership organised and managed from Country Z, a country with which Host Country does not have an income tax treaty, whose members consist of ten extremely wealthy individuals with prior business or social connections, three of whom are Host Country tax residents and the rest of whom are foreign (non-Country Z) tax residents. Lender is an investment partnership that makes strategic customised debt and equity investments throughout the world. Question: What are HFund's Host Country income (and other) tax withholding and reporting obligations with respect to its payments to Lender?
Citation source
In: Tax management international forum. - London. - Vol. 34 (2013),
http://library.link/vocab/creatorName
Messineo, A.E.
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • corporate income tax
  • withholding tax
  • reporting requirements
  • transfer pricing
  • cross-border transaction
  • tax treaty
  • MNE
  • intellectual property
  • royalties
  • foreign exchange
  • licensing
  • capital gains
  • non-resident
Label
Income tax withholding and reporting obligations on cross-border payments
Instantiates
Publication
Contents
Argentina p. 5-8; Belgium p. 9-13; Brazil p. 14-17; Canada p. 18-24; China p. 25-26; Denmark p. 27-30; France p. 31-35; Germany p. 36-38; Ireland p. 39-42; Italy p. 43-44; Japan p. 45-48; Malaysia p. 49-51 ; Mexico p. 52-54 ; Netherlands p. 55-64; Spain p. 65-69; Switzerland p. 70-73; United Kingdom p. 74-80; United States p. 81-92
Label
Income tax withholding and reporting obligations on cross-border payments
Publication
Contents
Argentina p. 5-8; Belgium p. 9-13; Brazil p. 14-17; Canada p. 18-24; China p. 25-26; Denmark p. 27-30; France p. 31-35; Germany p. 36-38; Ireland p. 39-42; Italy p. 43-44; Japan p. 45-48; Malaysia p. 49-51 ; Mexico p. 52-54 ; Netherlands p. 55-64; Spain p. 65-69; Switzerland p. 70-73; United Kingdom p. 74-80; United States p. 81-92

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