BEPS and Intangibles: How does it impact IP tax structures?
Intangible assets constitute a major value-driver for multi-national enterprises (MNEs). This is even more so for companies that rely on valuable intangibles rather than physical assets to generate financial returns. Intangibles such as patents, design, trademarks (or brands) and copyrights are generally easy to identify, value and transfer and as such attractive for multi-national tax planning structures especially as these rights usually does not have a fixed geographical basis and is highly mobile as a result can be relocated without significant costs. Many MNEs utilize IP structuring...
Read MoreAssignments of IP to non-residents: the amended Exchange Control Regulations
The Exchange Control Regulations (the “Regulations”) have been amended with effect from 8 June 2012 (Government Gazette No. 35430) to provide that transfers of ownership of intellectual property from a South African resident to a non-resident now require prior Treasury approval. While this amendment to the Regulations has drawn comments or criticisms from commentators, these have principally related to, inter alia, the apparent reversal of the stated policy of relaxing exchange controls or the alleged invalidity of the amendment. In contrast, the purpose of this note is to briefly...
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