Big changes in tax law on the horizon

On 16 September 2014, the OECD published a slew of discussion documents giving a head’s up of anticipated changes in the global tax system. Although it will be a few years before the proposed changes become effective, they will significantly …

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PCT filings – use of the rebate

It is common for companies to file PCT applications in the names of the inventors. The rationale being indirectly to qualify the company for the (up to) R36,000 rebate extended to natural persons making applications in certain designated countries. However, …

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Is the “licence” in substance a sale or a licence?

The doctrine of substance over form empowers our courts to ignore the form of a transaction and give effect to its proper substance. Accordingly, when faced with a “sale”, despite any “licence” labels, our courts will apply the tax consequences …

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When is payment for software a royalty?

Think back to when you last purchased a software package, was the transaction categorised as a “sale” or a “licence”? Typically, in order to restrict on-sale, distributors prefer to categorise the transaction as a “licence”. However, the two types of …

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Roll-up international licences

It appears to have become common practice to combine a licence, provision of technical services agreement, and continued R&D services agreement into a single agreement and call the composite agreement a “licence”. In principle, this is not necessarily incorrect, but …

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