A4.435 Patent royalties

A4.435 Patent royalties

ITA 2007, s 903 imposes a duty to deduct a sum representing income tax on a person making a payment of a patent royalty, or other sum in respect of the use of a patent. However, that section does not apply if the payment is a qualifying annual payment1. This ensures that a payment by an individual of a qualifying annual payment otherwise than for commercial reasons, which would not have been caught by the rules in ITA 2007, s 900 (see A4.433), is also not caught by this section.

ITA 2007, s 903 also does not apply

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