What is the Even Hotels licensee's responsibility regarding withholding taxes for Curated Solutions, and what documentation must they provide to IHG?
Even_Hotels 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 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, if any of the Curated Solutions are subject to withholding tax, the licensee is responsible for withholding and deducting these taxes from payments due to IHG. This withholding and deduction must be done as required by local tax jurisdictions and any applicable double tax treaties.
The Even Hotels licensee must then remit the withheld taxes to the appropriate tax authority. After doing so, the licensee is obligated to provide IHG with a tax certificate or invoice as proof of payment. This documentation must be provided to IHG within thirty days of the payment date.
Furthermore, Even Hotels and the licensee are expected to cooperate reasonably to claim any withholding benefits or exemptions available under applicable double tax treaties. This implies that the licensee should work with IHG to minimize tax burdens where possible by utilizing any legal avenues for tax relief.