Taxation of Intellectual Property Under Domestic Law and Tax Treaties: Australia

'Australia' in Guglielmo Maisto (ed.), "Taxation of Intellectual Property under Domestic Law, EU Law and Tax Treaties", IBFD: Amsterdam, 2018.

Sydney Law School Research Paper No. 18/75

24 Pages Posted: 3 Dec 2018

See all articles by Celeste Black

Celeste Black

The University of Sydney Law School

Date Written: November 22, 2018

Abstract

This chapter examines the operation of Australia’s domestic tax law and tax treaties in relation to transactions involving intellectual property (IP). It reviews the legal protections provided under Australia’s general law in relation to copyright, patents, trademarks and confidential information and considers the legal distinction between alienation of IP and granting the right to use IP (licencing). The application of domestic tax laws (income tax, depreciation rules and capital gains tax) to disposals and licencing transactions involving IP is considered before moving to cross-border transactions and the operation of royalty withholding tax. Australia’s tax treaty practice is then examined, specifically Article 12 (royalties) and the interaction with Article 7 (business profits). Special issues considered include: software, know how, equipment leasing, technical services and distinguishing royalties from payments for services.

Keywords: taxation law, royalties, intellectual property, withholding tax, tax treaties, Article 12, OECD Model, copyright, patent, equipment leasing, software

JEL Classification: K10, K30, K34, K33, K11

Suggested Citation

Black, Celeste, Taxation of Intellectual Property Under Domestic Law and Tax Treaties: Australia (November 22, 2018). 'Australia' in Guglielmo Maisto (ed.), "Taxation of Intellectual Property under Domestic Law, EU Law and Tax Treaties", IBFD: Amsterdam, 2018., Sydney Law School Research Paper No. 18/75, Available at SSRN: https://ssrn.com/abstract=3288907

Celeste Black (Contact Author)

The University of Sydney Law School ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

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