Are you the owner of intangible assets? Are you planning to sell, transfer or share them with group entities (e.g. in the form of a license, provision of services, sale of goods)?
At each stage of the transaction (planning, implementation, execution), it is worth considering TP aspects in order to secure your business. We have presented here the most important areas of focus.
Business benefits
- protection against transfer pricing risks
- protection of management board members against penal fiscal sanctions
- transaction conducted effectively from a business perspective
- accurate identification of TP profiles in creating the value-added chain
Transaction stage
What is important at each stage of the transaction?
Etap I
Planning phase
Do you have a legal ownership of intangibles and/or are you an economic owner?
What functions are you responsible for in relation to intangibles (DEMPE analysis)?
Our support:
- Analysis of the economic owner and legal owner
- DEMPE analysis – market allocation of profit between entities from TP perspective
Do you intend to share Intangible Assets with related entities?
Do you already have an established scope and method of cooperation with group entities?
Our support:
- Preparation of possible scenarios for implementation of sharing intangible assets
- Analysis of the functional profiles of entities, the scope and specification of cooperation
- DEMPE analysis
- Business substance analysis of the planned transaction
Do you share Intangible Assets within group?
Do you provide support related to intangibles assets?
Our suport:
- Review the TP models related to Intangible Assets
- Identification of potential TP risks related to intangible assets
Stage II
Implementation phase
What level of remuneration should be established in settlements with a related entity?
Our support:
- Selection of TP method
- Review of the arm’s length nature of the transaction
- Benchmarking analyses to determine the arm’s length remuneration level
- Support in selection of the appropriate remuneration – safe from TP perspective
- Preparation of underlying calculations
Do you know how to formally set-up settlements regarding intangible assets?
Do you have an agreement for the transfer of intangible assets?
Our support:
- Preparation / review of wording of the agreement regarding the scope of transfer and the valuation of intangible assets from TP perspective
Does the considered transfer of intangible assets qualify a business restructuring?
Our support:
- Identification of intangible assets transfers to be analyzed from TP perspective
- Review of the transferred intangible assets in terms of restructuring provisions and exit fee payments
- Identification of potential TP risks related to the transfer of intangible assets
- Exit fee calculations in respect to restructuring transfers
Stage III
Execution phase
What TP reporting obligations may be triggered by transactions related to intangible assets?
Our support:
- Analysis and identification of TP obligations
- Preparation of Local file documentation together with benchmarking analyses
- Preparation of Master File documentation
- Preparation of defense file documentation for the restructuring transactions
- Regular review of settlements / transactions
Contact us:
Agnieszka Krzyżaniak
Partner E: agnieszka.krzyzaniak@mddp.pl T: (+48) 692 558 020