ARTICLE · 16 DECEMBER 2024

Decoding Transfer Pricing: The Commercialisation Of IP For Multinational Corporations

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When companies operate globally, they often share goods and services within their own network of subsidiaries. The prices they set for these transactions are known as transfer pricing.

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When companies operate globally, they often share goods and services within their own network of subsidiaries. The prices they set for these transactions are known as transfer pricing. For Multinational Corporations (MNCs), getting these prices right is crucial, especially when it comes to Intellectual Property (IP) like technology and brand names.

In global commerce, transfer pricing has emerged as a critical issue for Multinational Corporations (MNCs) engaged in the commercialisation of Intellectual Property (IP). The recent judgment in the case of ABD Limited vs. The Commissioner for South African Revenue Service (SARS) sheds light on the complexities and intricacies involved in transfer pricing, particularly when it comes to licensing IP across borders.

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