Intangible Assets: BEPS Action 8 - Global Tax Update

The taxation of transactions involving intangible assets (either by licence of use or directly by their transmission) is possibly the OECD's biggest concern on transfer pricing and international tax at the moment. Action Group 8 was tasked with developing guidance on the transfer pricing aspects of intangibles.

Definition

According to the OECD guidelines, the term "intangible" refers to those non-physical or financial assets to be disposed of or controlled for use in commercial activities, transfer or whose use should be compensated as if it occurs between nonrelated parties.

Action Plan 8 develops standards to prevent BEPS as a result of intragroup transfer of intangibles with the following implications: