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.
- 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
What is important at each stage of the transaction?
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)?
- 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?
- 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
- Review the TP models related to Intangible Assets
- Identification of potential TP risks related to intangible assets
- 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?
- Preparation / review of wording of the agreement regarding the scope of transfer and the valuation of intangible assets from TP perspective
- 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
- 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