Weston Anson and Chaitali Ahya discusses the process of transfer pricing for intellectual property and intangible assets. Specifically cost-sharing arrangements and establishment of intercompany royalty rates within the IRS and EU regulations. As an IP consulting firm, CONSOR is regularly asked to assist client’s tax counsel with information regarding the establishment of intercompany royalty rates and appropriate fee structures for use in any trademark assets and technical know-how. This article summarizes the approach and royalty rate analysis valuation techniques that CONSOR utilizes to obtain market-based compensation for both the companies, consistent with tax regulations.
How to Make Transfer Pricing Work for IP and Intangible Assets
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