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Author: Karol Dziwinski
Publisher: Kluwer Law International B.V.
ISBN: 9403540508
Category : Law
Languages : en
Pages : 243
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Book Description
Under the widely applied rules of the OECD Transfer Pricing Guidelines, allocation of the returns from the exploitation of intellectual property should be shared among all entities that contribute towards the profit-generating value of an intangible. This important book, in its detailed treatment of compliance with this principle – known as DEMPE (development, enhancement, maintenance, protection and exploitation) – describes exactly how both taxpayers and tax authorities can achieve an accurate assessment of transactions in order to arrive at an appropriate transfer pricing outcome. Analysing the legal, economic, and business management aspects of multinational enterprises activities, the book provides a comprehensive understanding of the DEMPE concept both in theory and in practice. Fully covered are such issues and topics as the following: role of the DEMPE concept within the framework of international tax law and transfer pricing; interplay of the DEMPE concept with the arm’s length principle; full description of each DEMPE function and analysis in the light of possible tax and transfer pricing consequences; modes of application of the DEMPE concept which can be directly implemented in practice; and additional tools (e.g., value chain analysis or RACI matrix) useful in applying the DEMPE concept. The book also provides the first in-depth analysis of the interplay between the DEMPE concept and the licence model in its various structural variations. Taking into account that intangibles amount to 84% of the market value of the S&P 500 companies and that over 80% of global trade transactions can be linked to value chains of multinational enterprises – and recognizing the scarcity of guidance heretofore on the application of the DEMPE concept – tax advisors, corporate counsels, tax authorities, and academics around the world are sure to appreciate and benefit greatly from this matchless and practical book.
Author: Karol Dziwinski
Publisher: Kluwer Law International B.V.
ISBN: 9403540508
Category : Law
Languages : en
Pages : 243
Get Book Here
Book Description
Under the widely applied rules of the OECD Transfer Pricing Guidelines, allocation of the returns from the exploitation of intellectual property should be shared among all entities that contribute towards the profit-generating value of an intangible. This important book, in its detailed treatment of compliance with this principle – known as DEMPE (development, enhancement, maintenance, protection and exploitation) – describes exactly how both taxpayers and tax authorities can achieve an accurate assessment of transactions in order to arrive at an appropriate transfer pricing outcome. Analysing the legal, economic, and business management aspects of multinational enterprises activities, the book provides a comprehensive understanding of the DEMPE concept both in theory and in practice. Fully covered are such issues and topics as the following: role of the DEMPE concept within the framework of international tax law and transfer pricing; interplay of the DEMPE concept with the arm’s length principle; full description of each DEMPE function and analysis in the light of possible tax and transfer pricing consequences; modes of application of the DEMPE concept which can be directly implemented in practice; and additional tools (e.g., value chain analysis or RACI matrix) useful in applying the DEMPE concept. The book also provides the first in-depth analysis of the interplay between the DEMPE concept and the licence model in its various structural variations. Taking into account that intangibles amount to 84% of the market value of the S&P 500 companies and that over 80% of global trade transactions can be linked to value chains of multinational enterprises – and recognizing the scarcity of guidance heretofore on the application of the DEMPE concept – tax advisors, corporate counsels, tax authorities, and academics around the world are sure to appreciate and benefit greatly from this matchless and practical book.
Author: Karol Dziwinski
Publisher:
ISBN: 9789403540450
Category :
Languages : en
Pages : 288
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Book Description
Under the widely applied rules of the OECD Transfer Pricing Guidelines, allocation of the returns from the exploitation of intellectual property should be shared among all entities that contribute towards the profit-generating value of an intangible. This important book, in its detailed treatment of compliance with this principle - known as DEMPE (development, enhancement, maintenance, protection and exploitation) - describes exactly how both taxpayers and tax authorities can achieve an accurate assessment of transactions in order to arrive at an appropriate transfer pricing outcome. Analysing the legal, economic, and business management aspects of multinational enterprises activities, the book provides a comprehensive understanding of the DEMPE concept both in theory and in practice. Fully covered are such issues and topics as the following: role of the DEMPE concept within the framework of international tax law and transfer pricing; interplay of the DEMPE concept with the arm's length principle; full description of each DEMPE function and analysis in the light of possible tax and transfer pricing consequences; modes of application of the DEMPE concept which can be directly implemented in practice; and additional tools (e.g., value chain analysis or RACI matrix) useful in applying the DEMPE concept. The book also provides the first in-depth analysis of the interplay between the DEMPE concept and the licence model in its various structural variations. Taking into account that intangibles amount to 84% of the market value of the S&P 500 companies and that over 80% of global trade transactions can be linked to value chains of multinational enterprises - and recognizing the scarcity of guidance heretofore on the application of the DEMPE concept - tax advisors, corporate counsels, tax authorities, and academics around the world are sure to appreciate and benefit greatly from this matchless and practical book.
Author: V. Chand
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The main objective of this contribution is to provide the authors' perspective on selected issues vis-à-vis the DEMPE approach. After an introduction to the DEMPE concept, the contribution analyses a scope-related question, that is, whether article 9 permits or restricts DEMPE-related structural adjustments on the basis of either actual conduct or the commercially irrational exception. To a certain extent, the application of these matters vis-à-vis profit allocation for intangible-related transactions under article 7 is also analysed. Thereafter, it analyses a conceptual issue pertaining to the role of the funder. In particular, it analyses whether the residual profits derived from intangible exploitation should be allocated only to the entity that performs key DEMPE functions, or whether part of such a residual should be allocated to the funder of the intangible, in the event that the latter is an entity different from the entity performing the DEMPE activities. On the practical side, the article initially discusses the challenges that arise for both taxpayers and tax administrations in implementing the DEMPE approach and thereafter proposes certain ways to mitigate those challenges. Finally, the article discusses the role of the DEMPE concept in the ongoing debate on the digitalization of the economy. In particular, it discusses the role of the DEMPE concept in a profit shifting, tax competition and Pillar Two context. Moreover, it examines the role of the DEMPE concept in determining the paying entity/surrender jurisdiction in the Pillar One discussion vis-à-vis Amount A. The article concludes with some key suggestions for taxpayers and policy makers. The contribution is based on recent case law from across the globe, the latest guidance issued by tax administrations and policymakers, the OECD blueprints for Pillar One and Pillar Two and the scholarly literature.
Author: P. Subramanian
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This article explores the DEMPE concept introduced by the OECD - "development, enhancement, maintenance, protection and exploitation" of intangibles - and its place in the broader framework for analyzing related-party transfers of intangibles.
Author: Michael Lang
Publisher: Linde Verlag GmbH
ISBN: 370941010X
Category : Law
Languages : en
Pages : 176
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Book Description
Transfer pricing treatment of intangibles: Issues und developments In recent decades, intangibles have become one of the most relevant success factors for Multinational Enterprises (MNEs). Along with the increasing importance of intangibles for economies, their tax treatment has also been under scrutiny which includes inter alia respective transfer pricing issues. MNEs are seeking for the best ways to optimize their business arrangements with the related intangibles while, at the same time, getting the most tax-efficient treatment. On the other hand, tax authorities have become increasingly concerned with the ease that intangibles can be used in aggressive planning. These concerns have been noticed and addressed by the Organization for Economic Cooperation and Development which presented its main findings with respect to transfer pricing aspects of intangibles in Action 8 of the BEPS Project in 2015 and in the 2017 OECD Transfer Pricing Guidelines. This book is based on the outcomes of the presentations and discussions held during the WU Transfer Pricing Symposium, ‘Transfer Pricing and Intangibles: Current Developments, Relevant Issues and Possible Solutions’, that took place in October 2018 at the WU Vienna University of Economics and Business. The publication discusses the most important issues and recent developments related to transfer pricing treatment of intangibles. Starting with the definition of intangibles, it further deals with topics such as appropriate attribution of intangible-related profits, structuring of intangibles in MNEs, and proper valuation of intangibles. The authors, apart from providing a theoretical background to the discussed issues, also present case studies that show how certain issues can be approached in practice. Every chapter ends with a summary of the discussions held during the panels of the Transfer Pricing Symposium in which representatives of tax administrations, multinationals, and tax advisories presented their opinions on the issues at stake.
Author: C. (X.) Peng
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Intangibles are gaining more and more importance in the global value chain of multinational enterprises. In light of related developments pursuant to the BEPS Project, this article examines some challenging fields of the transfer pricing aspects of intangibles, i.e. identifying the ownership and assessing contributions to intangibles, which particularly includes the development, enhancement, maintenance, protection and exploitation (DEMPE) concept. Moreover, the article outlines considerations and challenges in view of the practical application of the responsible, accountable, consulted and informed (RACI) model in a value chain or value contribution analysis, or in other transfer pricing documentation elements, and argues that the model should be applied with prudence in business practice.
Author: I. Verlinden
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
After an introduction, section 2 of this article describes intangibles in the context of transfer pricing and the value creation of intangibles. Related parties in multiple countries can create value. The fair allocation of intangible related income over the involved parties requires a deeper dive into the Development, Enhancement, Maintenance, Protection and Exploitation (DEMPE). This is discussed in section 3. In section 4, the concept of a comprehensive and fit-for-purpose Value Chain Analysis is described as a means to identify DEMPE and put it into perspective. Subsequently, for the selection of the most appropriate method when setting pricing for intangibles, the relation with the transfer pricing methods is discussed in section 5. In section 6, the practical perspective for the application of DEMPE is discussed. The contribution concludes in section 7 with a discussion about the enhancement of the DEMPE concept.
Author: Florian Navisotschnigg
Publisher: Kluwer Law International B.V.
ISBN: 940354905X
Category : Law
Languages : en
Pages : 233
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Book Description
The notion of ‘substance’ is proving to be central to the OECD’s base erosion and profit shifting (BEPS) project, particularly in the area of taxation of intangibles. In this book, this notoriously hard-to-define concept is examined from three distinct angles: transfer pricing (DEMPE Approach), harmful tax practices (Substantial Activity Requirement), and tax treaties (Beneficial Ownership). In a thoroughgoing investigation using the practical example of an IP company, the author provides detailed and precise answers to the following questions: What substance is necessary to be entitled to intangible-related returns? What substance is necessary to benefit from preferential IP regimes or no or only nominal tax jurisdictions? What substance is necessary to collect royalties free from withholding taxes? Given the need to agree on a common understanding of substance in international tax law in order to avoid costly tax disputes, this important book is unmatched for the clear light it sheds on the most relevant substance requirements regarding intangibles. It will prove invaluable to tax practitioners and in-house counsel who are dealing with cross-border transactions concerning intangibles.
Author: Sven Hentschel
Publisher: Springer Nature
ISBN: 3658340002
Category : Law
Languages : en
Pages : 521
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Book Description
This book provides a comprehensive analysis of the rules governing the taxation of permanent establishments as implemented in the OECD Model Tax Convention and German national tax law. Deviations between the OECD approach and the German approach are identified and modifications to the rules as a result of the Base Erosion and Profit Shifting (BEPS) project are examined. Moreover, challenges imposed to the PE concept as a result of the digitalisation of the economy are identified and discussed. Against this background, the Pillar One Blueprint proposing a long-term solution to overcome the tax challenges arising from the digitalisation of the economy is presented and assessed against widely accepted overarching principles of tax policy.
Author: Michael Lang
Publisher: Linde Verlag GmbH
ISBN: 3709410118
Category : Law
Languages : en
Pages : 141
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Book Description
Transfer pricing treatment of intangibles: Issues und developments In recent decades, intangibles have become one of the most relevant success factors for Multinational Enterprises (MNEs). Along with the increasing importance of intangibles for economies, their tax treatment has also been under scrutiny which includes inter alia respective transfer pricing issues. MNEs are seeking for the best ways to optimize their business arrangements with the related intangibles while, at the same time, getting the most tax-efficient treatment. On the other hand, tax authorities have become increasingly concerned with the ease that intangibles can be used in aggressive planning. These concerns have been noticed and addressed by the Organization for Economic Cooperation and Development which presented its main findings with respect to transfer pricing aspects of intangibles in Action 8 of the BEPS Project in 2015 and in the 2017 OECD Transfer Pricing Guidelines. This book is based on the outcomes of the presentations and discussions held during the WU Transfer Pricing Symposium, ‘Transfer Pricing and Intangibles: Current Developments, Relevant Issues and Possible Solutions’, that took place in October 2018 at the WU Vienna University of Economics and Business. The publication discusses the most important issues and recent developments related to transfer pricing treatment of intangibles. Starting with the definition of intangibles, it further deals with topics such as appropriate attribution of intangible-related profits, structuring of intangibles in MNEs, and proper valuation of intangibles. The authors, apart from providing a theoretical background to the discussed issues, also present case studies that show how certain issues can be approached in practice. Every chapter ends with a summary of the discussions held during the panels of the Transfer Pricing Symposium in which representatives of tax administrations, multinationals, and tax advisories presented their opinions on the issues at stake.
