Ultimate income beneficiary
The Organisation for Economic Cooperation and Development (“OECD”) has published discussion material intending to clarify the definition of an ultimate income beneficiary[1].
Fulfillment of conditions for an ultimate income beneficiary is fundamental for recognition of benefits (lower tax rates) arising from a relevant double taxation treaty, in particular in case of income from dividends or interests and license fees.
In the discussion material, the OECD proposed new comments on Article 10 – Dividends, 11 – Interests and 12 – License fees for the OECD Model Tax Convention. According to this proposal, a person who is fully entitled to dispose with the relevant income and receive the benefits arising from such income (and such entitlements are not restricted by the obligation to transfer the relevant income to a third party) can be considered as the actual owner of the income.
Fulfillment of all conditions can be proven by a confirmation of tax residency, an affidavit that the relevant person is the ultimate income beneficiary or by other possible evidence pursuant to a double taxation treaty or applicable tax laws.
[1] The OECD uses the term “beneficial owner”: http://www.oecd.org/dataoecd/49/35/47643872.pdf
Other articles
Richard Schmidt Joins KŠB, Strengthening Its Corporate Criminal Liability and Compliance Practice
KŠB expanded its team at the beginning of August with the arrival of attorney Richard Schmidt, who has extensive experience in criminal law, including corporate criminal liability and related compliance matters.
Active counter-drone measures need a broader legal basis
A highly noteworthy legislative proposal was added to the VeKLEP interministerial consultation database on 21 July 2026, namely a government bill amending several laws with the aim of strengthening the resilience of critical infrastructure entities against unmanned aircraft systems. Drafted by the Ministry of the Interior, the bill includes proposed amendments to the Civil Aviation Act and the Act on the Czech Police.
Tomáš Sequens and Dana Jacková Discuss the Risks of the Proposed Amendment to the Building Act
KŠB partner Tomáš Sequens and counsel Dana Jacková recently spoke to specialist news platforms Česká justice and Ekonomický deník about the proposed amendment to the Building Act, which aims to accelerate and simplify the construction permitting process.
