What are the Crowne Plaza licensee's obligations regarding withholding taxes on Curated Solutions, including remittance and documentation, and what is the timeframe for providing evidence of payment to IHG?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.6 Withholding Taxes. If any of the Curated Solutions, or any component thereof, is subject to withholding Tax, Licensee will withhold and deduct from payments due to IHG hereunder as required under any local Tax jurisdiction and/or applicable double Tax treaty, and Licensee shall remit such withholding to the appropriate Tax authority and provide IHG with an appropriate Tax certificate/invoice evidencing payment within thirty (30) days of payment. IHG and Licensee shall reasonably cooperate to claim withholding benefits or exemptions available under any applicable double Tax treaty.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, if any of the Curated Solutions are subject to withholding tax, the licensee is responsible for withholding and deducting the required amount from payments due to IHG. This withholding and deduction must comply with local tax jurisdiction laws and any applicable double tax treaties.
The licensee must then remit the withheld taxes to the appropriate tax authority. As evidence of payment, the licensee is obligated to provide IHG with a tax certificate or invoice within thirty days of making the payment. This documentation serves as proof that the licensee has fulfilled their tax obligations related to the Curated Solutions.
Both Crowne Plaza and the licensee are expected to cooperate reasonably to claim any available withholding benefits or exemptions under applicable double tax treaties. This cooperation aims to minimize tax burdens where possible, leveraging any legal avenues for tax relief.