Bata Brands S.A. Switzerland has increased the royalty payments remittable from Bata Pakistan Limited from 2 percent of net turnover to 5 percent of net turnover subject to deduction of withholding tax and any other taxes.
Board of Directors at Bata Pakistan considered and approved the changes in Royalty Agreement dated 01/01/2015 between Bata Brands S.A. Switzerland and Bata Pakistan Limited.
According to the notice, “as per the draft amended agreement, royalty payment remittable from Bata Pakistan Limited to Bata Brands S.A. Switzerland will increase from 2 percent of net turnover which has to be paid net of any taxes to 5 percent of net turnover subject to deduction of withholding tax and any other taxes, levies or dues of all kinds imposed on the Annual Royalty by any authority”.
Bata Pakistan in the notice mentioned that this raise “will have an impact on net profit of the company but as per the addendum agreement Company will get more marketing support from Bata Brands S.A. Switzerland.”
Furthermore, the company informed that the agreement will be applicable from July 01, 2018 and term of the Trade License Agreement is amended to be completed by December 31, 2028 against previous expiry of December 31, 2028.