Saatja: "Daryna Babych" <
[email protected]>
Saaja: "Info - RAM" <
[email protected]>
Teema: withholding tax
Kuupäev: 2025-05-13 12:53
Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga.
Tundmatu saatja korral palume linke ja faile mitte avada.
Dear Sir/Madam,
We have a company in Estonia and we are currently considering entering into
royalty or SaaS agreements with a foreign partner company registered in
Belize.
Please kindly clarify the following:
1. If our Estonian entity pays royalty fees or SaaS-related compensation to
a company in Belize (which does not own intellectual property rights but
acts as a distributor), what would be the tax treatment of such payments
under Estonian law?
2. Would such payments be subject to withholding tax or other forms of
taxation in Estonia?
3. Belize is listed in Annex II of the EU — the list of jurisdictions that
cooperate with the EU but have pending commitments in the area of tax
regulation. Does this mean Belize is currently considered an offshore or
high-risk jurisdiction by Estonian tax authorities? If so, what are the
implications for the deductibility of such expenses?
4. Would the principle of "substance over form" (as stated in § 84 of the
Estonian Taxation Act) be applicable in such transactions?
5. What additional documentation or justification would be required from our
side to prove the economic substance and commercial rationale behind these
payments?
We look forward to your response and are open to further instructions or
documentation you may require.
Kind regards,
Daryna