1. World problems
  2. Tax barriers to the dissemination of technical knowledge

Tax barriers to the dissemination of technical knowledge

  • International double taxation of royalties

Incidence

A double taxation problem arises when the person or corporation making the expertise or inspiration available is resident in one country and the user is resident in a second country. Each of the two countries may then claim the rights to tax the royalties and will not afford relief for tax paid in the other country. The burden of the tax paid for the privilege of using copyright, patents, designs, trade marks, secret processes and formulae, know-how and the like, may then be intolerably heavy. The use may have to be foregone in some countries or the user must accept a serious restriction on the profitability of his business. This creates a special difficulty in the case of developing countries.

Broader

Strategy

Taxing royalties
Yet to rate

Value

Overtax
Yet to rate
Knowledge
Yet to rate
Double-standard
Yet to rate
Barrier
Yet to rate

SDG

Sustainable Development Goal #12: Responsible Consumption and Production

Metadata

Database
World problems
Type
(D) Detailed problems
Biological classification
N/A
Subject
  • Commerce » Finance
  • Commerce » Taxation
  • Communication » Promotion
  • Societal problems » Impediments
  • Technology » Technical
  • Content quality
    Unpresentable
     Unpresentable
    Language
    English
    1A4N
    D3050
    DOCID
    11430500
    D7NID
    155484
    Last update
    Oct 4, 2020