Distribution and Franchising

Recent Articles

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  11.07.2023

  Europe

  EU reaches agreement on Data Act – Comprehensive EU data law is on the way

  On 27 June 2023, the European Parliament and Council resolved the remaining open points and reached a political agreement on the EU Data Act, paving the way for a new law that will introduce comprehensive new data legislation for Europe with far-reaching rules on access to and use of non-personal data in the EU. The EU Data Act aims to boost the EU's data economy by unlocking industrial data, optimising its accessibility and use, and fostering a competitive and reliable European cloud market. To achieve these aims, the EU Data Act contains a set of rules defining how the various forms of data...

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  13.06.2023

  Middle East

  UAE Corporate Tax Law: When does a non-resident juridical person have a UAE Nexus?

  BackgroundThe UAE enacted its Corporate Tax Law (the “CTL”) in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The CTL came into force on 1 June 2023. The main corporate tax rate of 9% applies on income exceeding AED 375,000 (roughly USD 102,000). The CLT provides that the rate of corporate tax which applies to “Qualifying Free Zone Persons” is 0% with respect to qualifying income and 9% on non-qualifying revenue.Under Article 11 of the CTL, a taxable person includes a non-resident person which has a UAE nexus.Cabinet Decision...

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  05.06.2023

  Middle East

  UAE Corporate Tax Law: What Constitutes Qualifying Income for Free Zone Persons?

  BackgroundThe UAE enacted its Corporate Tax Law (the “CTL”) in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The CTL came into force on 1 June 2023. The main corporate tax rate of 9% applies on income exceeding AED 375,000 (roughly USD 102,000). The CLT provides that the rate of corporate tax which applies to “Qualifying Free Zone Persons” (“QFZP”) is 0% with respect to qualifying income (“Qualifying Income”) and 9% on non-qualifying revenue (“Non-Qualifying Revenue”).After much anticipation,...

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  28.04.2023

  Germany

  Manufacturers can set margin components and bonuses for authorised dealers, rules Frankfurt court

  The claimant is an association of authorised dealers with the capacity to bring legal actions against breaches of competition law and the law on general terms and conditions. The defendant manufactures vehicles and distributes them through authorised dealers under a selective distribution system. The authorised dealers are members of the claimant. A new dealer contract implemented by the defendant vehicle manufacturer provides that margin components and bonuses are not part of the dealer contract, and can be determined unilaterally by the manufacturer in an annual circular. This position was contested...

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  28.04.2023

  United Kingdom

  Specialisation and R&D: how can businesses collaborate without breaching competition law?

  Current economic pressure impacting businesses and their supply chains, combined with more pressing demands for better ESG and innovation, are driving businesses to collaborate more closely. This includes pressure on businesses to collaborate with their competitors.For competition authorities, collaboration between competitors has been (and remains) an area of sensitivity. The key concern being that collaboration may risk reducing the intensity of competition, leading to poorer outcomes for consumers or, in more serious cases, it may simply result in collusion that is clearly anti-competitive....

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  25.04.2023

  Middle East

  Corporate Tax Thought Leadership Series: Anti-Abuse Rules for Small Business Relief

  BackgroundThe UAE enacted its Corporate Tax Law in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The Corporate Tax Law applies with effect from 1 June 2023. A 9% tax rate will apply on income exceeding AED 375,000 (approx. US$102k). Despite its name, the Corporate Tax Law treats a natural person conducting business in the UAE as a “Resident Person”. Such a person’s business income would be subject to corporate tax in the UAE. Should the legislation not have extended the scope of the Corporate Tax Law to natural persons...

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