Transfer Pricing And Intangibles

We highlight below a few key attributes of intangibles from a Transfer Pricing (“TP”) perspective.

1. Introduction

Intangibles:

• Assets not physical or financial in nature
• Owned or controlled for commercial activities purposes
• Compensation on usage or transfer with third parties

2. Types of Intangibles

• Goodwill
• Brands
• Patents
• Trade names or trademarks
• Copyrights
• Licenses
• Customer lists
• Technical know-how
• Research and development
• Trade secrets

3. Major TP Considerations

• Identification of intangibles
• Determination of arm's length price

4. Major Types of Transactions

• Transfers of intangibles or rights in intangibles
• Use of intangibles for sale of goods or services