Taxation of Intellectual Property under Domestic Law, EU Law and Tax Treaties.

Cover -- Title -- Copyright -- Acknowledgements -- Foreword -- Part One: Intellectual Property under Domestic Tax Law -- Chapter 1: Taxation of Intellectual Property (IP) in Domestic Tax Law -- 1.1. Introduction -- 1.2. Role of domestic income tax law for the application of article 12 -- 1.2.1. Qualification as IP under article 12(2) OECD Model/12(3) UN Model -- 1.2.2. Use (renting out) vs alienation -- 1.2.3. Use vs rendering services -- 1.3. Comparative studies -- 1.3.1. Taxation of residents -- 1.3.1.1. Royalty income -- 1.3.1.2. Expenses -- 1.3.1.2.1. IP owner -- 1.3.1.2.2. Licensee -- 1.3.2. Taxation of non-residents -- 1.3.3. Royalty income and CFC rules -- 1.4. Conclusions -- Chapter 2: Intellectual Property (IP) Income and Tax Treaty Abuse: Relevance of BEPS Actions 5 and 8-10 for the Principal Purpose Test -- 2.1. Introduction -- 2.2. General considerations on the PPT -- 2.3. Relevance of substance and value creation under the PPT analysis -- 2.4. Relevance of BEPS Actions 5 and 8-10 in the PPT analysis -- 2.4.1. IP company exercising DEMPE functions in the state of residence availing or not of a nexus-compliant patent box regime -- 2.4.2. Application of the PPT in licensing and sub-licensing situations -- 2.5. Conclusions -- Part Two: EU Law Tax Aspects of Intellectual Property -- Chapter 3: An EU Free Movement and State Aid Perspective on the Development of IP in a Foreign PE -- 3.1. Introduction -- 3.2. Countering harmful tax practices -- 3.3. EU free movement law -- 3.3.1. EU case law -- 3.3.2. Analysis -- 3.4. EU State aid law -- 3.4.1. Introduction -- 3.4.2. Advantage -- 3.4.3. Selectivity -- 3.4.4. Anti-abuse measures -- 3.4.5. IP regimes generally -- 3.4.6. The modified nexus approach -- 3.5. Conclusions -- Chapter 4: Open Issues in the Application of the Interest and Royalty Directive to Royalty Payments -- 4.1. Introduction.

4.2. The definition of royalties -- 4.2.1. In general -- 4.2.2. The renvoi to domestic law -- 4.2.3. The relevance of EU private law instruments on IP rights -- 4.2.4. Using the OECD Model Commentary -- 4.3. The subject-to-tax requirement -- 4.3.1. A "subjective" or an "objective" requirement? -- 4.3.2. Attempts to modify the "subject-to-tax" requirement -- 4.4. Beneficial ownership and abuse -- 4.4.1. Interpretation of the term "beneficial owner" -- 4.4.2. Means to tackle abuses of the Directive -- 4.4.3. The "minimum holding period" requirement -- 4.5. Procedural issues -- 4.5.1. Formal requirements introduced by Member States -- 4.5.2. Exemption applied in the absence of attestation or decision at the time of the payment -- 4.5.3. Recovery of the tax in the case of abuse -- 4.6. Policy perspective -- 4.6.1. The missing external dimension -- 4.6.2. A possible solution: The ATRiD -- 4.6.3. The EU external competence to conclude tax treaties -- Part Three: Tax Treaty Issues of Intellectual Property -- Chapter 5: Source vs Residence Taxation of Royalties: A Historical Perspective -- 5.1. Introduction -- 5.2. The work of the League of Nations -- 5.3. The work of the OEEC -- 5.4. The 1977 OECD Model and after -- 5.5. Conclusion -- Chapter 6: Article 12 OECD/UN Models: Definition of Royalties and "Overlapping" between Articles 7, 12 and 13 -- 6.1. Introduction -- 6.2. The reasons for overlapping between the royalty definition and the concept of business profits/capital gains in the OECD and UN Models -- 6.3. Historical evolution of article 12 OECD Model and the "unfinished job" in defining royalties -- 6.3.1. Why is there a royalty article in the OECD Model? -- 6.3.2. The evolution of the Commentary on Article 12 OECD Model in the period 1963-2017: An unfinished royalty definition with strong potential for overlapping with other articles.

6.4. The concept of royalties in article 12 OECD Model and domestic law -- 6.5. The "contextual definition" of royalties in the Commentary on Article 12 OECD Model -- 6.5.1. The move towards a "contextual definition" of royalties -- 6.5.2. The contextual definition of "use" and "sale" in the Commentary on Article 12 OECD Model -- 6.5.3. The contextual definition of "know-how" and the problems of technical assistance -- 6.5.4. Conclusions -- 6.6. BEPS and overlapping of articles 7, 12 and 13 OECD Model -- 6.7. Building blocks? Conflicts of classification and the emergence of an "alternative UN context" for the taxation of royalties -- 6.8. Conclusions -- Part Four: International Developments -- Chapter 7: Royalties in the Context of the Multilateral Instrument, the Principal Purpose Test and the Limitation on Benefits Provision -- 7.1. Introduction -- 7.2. The BEPS Project and Action 6 (prevention of tax treaty abuse) -- 7.3. Implementation of the Action 6 minimum standard to prevent tax treaty abuse -- 7.3.1. Title and preamble of tax treaties -- 7.3.2. Principal purpose test -- 7.3.3. The LOB provision and its interaction with the PPT -- 7.3.4. The Multilateral Instrument and anti-abuse measures -- 7.4. Application of the Action 6 anti-abuse standard to cross-border payment of royalties -- 7.5. Conclusion -- Chapter 8: Transfers of Intangibles under Tax Treaties (Although all the Fun Stuff is in the Transfer Pricing Guidelines) -- 8.1. Introduction -- 8.2. The application of tax treaties to transfers of intangible property -- 8.2.1. Allocation of taxing rights under the OECD and UN Models -- 8.2.2. Treaty practice with respect to royalties and capital gains: Symmetry or cynicism? -- 8.2.3. Delineating the boundary between article 13 and article 12 -- 8.3. Transfer of intangibles to a related party.

8.3.1. Determining a price for the transfer of IP to a related party -- 8.3.2. Issues relating to contributions to capital -- 8.3.3. Ignoring separate entities entirely -- 8.3.4. Does it matter? -- 8.3.5. Transfers of "non-proprietary" intangibles -- 8.4. Conclusion -- Part Five: Country Reports -- Chapter 9: Australia -- 9.1. Introduction on private law aspects of IP -- 9.1.1. Private law meaning of terms used in the tax treaty definition of royalties (article 12 OECD and UN Models) and the evolution of the rights protected under the relevant private law -- 9.1.2. Distinction under private law between alienation of IP and granting the right to use IP -- 9.2. Taxation of IP under the domestic tax law -- 9.2.1. Meaning of "royalties" and qualification of income deriving from utilization of IP -- 9.2.2. Qualification of income deriving from IP and applicable tax regimes -- 9.2.3. Tax treatment of income from IP derived by non-resident taxpayers -- 9.2.4. Attribution to resident taxpayers of IP income derived by non-resident entities under CFC and similar rules -- 9.3. Taxation of IP under EU law -- 9.4. Taxation of IP under tax treaties -- 9.4.1. Taxing rights over royalties assigned by article 12(1) -- 9.4.2. Meaning of "royalties" and overlapping between articles 7, 12 and 13 -- 9.4.2.1. Distinguishing royalties and payments for services or other rights -- 9.4.2.2. Cross-border equipment leasing -- 9.4.2.3. Payments for technical services and interaction of articles 7 and 12 -- 9.4.3. Beneficial ownership and royalties -- 9.4.4. Exemption in the source state in cases of favourable tax regimes applicable to the beneficial owner of the royalties in the residence state -- 9.4.5. Time of taxation -- 9.4.6. Excessive royalty payments -- Chapter 10: Austria -- 10.1. Introduction on private law aspects of intellectual property (IP).

10.1.1. Private law meaning of terms used in the tax treaty definition of royalties (article 12 OECD and UN Models) and the evolution of the rights protected under the relevant private law -- 10.1.2. Distinction under private law between alienation of IP and granting the right to use IP -- 10.2. Taxation of IP under the domestic tax law -- 10.2.1. Meaning of "royalties" and qualification of income deriving from utilization of IP -- 10.2.2. Qualification of income deriving from IP and applicable tax regimes -- 10.2.2.1. Categories of income -- 10.2.2.2. Income from renting, leasing and royalties -- 10.2.2.3. Income from self-employment -- 10.2.2.4. Income from commercial activities -- 10.2.4.1. Switch-over for dividends stemming from low-tax jurisdictions -- 10.2.4.2. Comparability of the Austrian rules to the ATAD -- 10.2.4.3. Prohibition of royalty deduction in special cases -- 10.2.2.5. Reduced tax rate for exploitation of patent rights -- 10.2.2.6. Taxation of corporations -- 10.2.2.7. Economic ownership concept in tax law -- 10.2.2.8. Tax premium for research activities -- 10.2.3. Tax treatment of income from IP derived by non-resident taxpayers -- 10.2.4. Attribution to resident taxpayers of IP income derived by non-resident entities under CFC and similar rules -- 10.3. Taxation of IP under EU law -- 10.3.1. Issues of compatibility of domestic law with EU law -- 10.3.1.1. Inbound royalties -- 10.3.1.2. Outbound royalties -- 10.3.1.3. Research premium -- 10.3.2. Inbound and outbound royalty taxation with respect to third countries -- 10.3.3. Domestic tax regime and EU State aid rules -- 10.3.4. Open issues in the interpretation of the I&amp -- R Directive -- 10.3.4.1. The notion of "royalties" included in article 2(b) of the I&amp -- R Directive -- 10.3.4.2. The introduction of a "minimum effective taxation clause".

10.3.4.3. Anti-abuse provisions and beneficial ownership clauses.

This book presents a unique and detailed insight into the taxation of intellectual property in an international context.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.