The withholding tax is paid for interest, dividends, profit shares, and royalties and other intellectual property rights (reproduction rights, patents, licenses, copyrighted marks, designs, or models, manufacturing procedure, production formulas, sketch, plan, industrial or scientific experience, and other similar rights) paid to foreign persons that are not natural persons.
The fees for royalties and other intellectual property rights include fees for the use of intellectual property rights including rights to reproduction of literary, artistic and scientific works and software, cinematographic works, patents, trade names and trademarks, designs or models, plans, drafts, secret formulae or procedures, right to use of industrial, commercial or scientific know-how, patents, licences, trademarks, design or model, production procedure, production formulae, draft, plan, industrial or commercial know-how, protected by legislation and practice regulating their acquisition and usage.
Withholding tax is also payable on market research services, tax and business consulting and auditing services paid to foreign persons.
Market research services imply the manner of collecting market information, market characteristics determining, market potentials measuring, market share analyses, sales analyses, business trends research, short-term and long-term forecasts, examining competitors’ supply, price research, testing of new and existing products on the market. Market research services do not include advertising and advertising services.
Business consulting services are considered as any form of business advice or consultation. Exceptionally, business consultancy services are not considered as courses, seminars, workshops and similar teaching methods, as well as services of engineers, architects and similar services, which have a written basis of treatment (drafts, instructions and other documents of action).
Furthermore, consulting services are not considered as services charged as brokering and representation services in business, services taxed under Article 21, paragraph 1, item 3 of the Income Tax Act and the use of various databases.