Ultimate income beneficiary
The Organisation for Economic Cooperation and Development (“OECD”) has published discussion material intending to clarify the definition of an ultimate income beneficiary[1].
Fulfillment of conditions for an ultimate income beneficiary is fundamental for recognition of benefits (lower tax rates) arising from a relevant double taxation treaty, in particular in case of income from dividends or interests and license fees.
In the discussion material, the OECD proposed new comments on Article 10 – Dividends, 11 – Interests and 12 – License fees for the OECD Model Tax Convention. According to this proposal, a person who is fully entitled to dispose with the relevant income and receive the benefits arising from such income (and such entitlements are not restricted by the obligation to transfer the relevant income to a third party) can be considered as the actual owner of the income.
Fulfillment of all conditions can be proven by a confirmation of tax residency, an affidavit that the relevant person is the ultimate income beneficiary or by other possible evidence pursuant to a double taxation treaty or applicable tax laws.
[1] The OECD uses the term “beneficial owner”: http://www.oecd.org/dataoecd/49/35/47643872.pdf
Other articles
KŠB achieved a significant victory in one of the most closely watched cases concerning a review of the adequacy of the consideration paid in a squeeze-out of minority shareholders
The Municipal Court in Prague, in the first instance, dismissed the claims of former minority shareholders of PFNonwovens a.s., who challenged the adequacy of the consideration paid during the squeeze-out carried out in March 2021 and sought to have it increased by up to double the amount.
KŠB podpořila letošní SVOČ na Právnické fakultě UK
Advokátní kancelář Kocián Šolc Balaštík se letos stala partnerem Studentské vědecké a odborné činnosti (SVOČ) pořádané Právnickou fakultou Univerzity Karlovy.
Je stabilita stavebního práva reálným cílem?
Advokátní kancelář KŠB byla odborným garantem diskuse legalwebu s názvem „Stabilita stavebního práva – iluze, nebo reálný cíl?“, která na konci dubna přivedla ke společnému stolu zástupce veřejné správy, developerů, profesních svazů i dalších odborníků ze stavební praxe. Debata se zaměřila na aktuálně projednávané změny nového stavebního zákona (NSZ) a jejich očekávané dopady.
