Transfer Pricing

Cost Sharing Arrangements

Cost Sharing Arrangements

Although cost-sharing arrangements have been used by multinational companies (MNCs) as part of tax planning strategies for years, recent regulatory developments have subjected cost-sharing arrangements to intense scrutiny. These developments include a major reformulation by the US Internal Revenue Service (IRS) of the 1995 cost-sharing regulations in January 2009; OECD ongoing revision of guidance on business restructuring; and the introduction by the German tax authorities of aggressive regulations related to valuing transfers of functions or risks in 2005. 

Under these new regulations, certain intercompany transfers of intangibles—broadly defined as transfers of any profit-driving assets and capabilities—may have to be valued under a framework where all of the benefits from the transferred intangibles, including the benefits from subsequent development of these intangibles, accrue to the original intangibles developer.

NERA's experts assist clients in addressing the new requirements of these regulatory pronouncements and in adapting the valuations applied for existing arrangements and restructuring transactions to the new valuation paradigms.

Name Title Location Phone Email
Dr. Harlow Higinbotham Managing Director Chicago +1 312 573 2803
+86 21 6103 5544
+86 10 6533 4395
harlow.higinbotham@nera.com
Dr. Emmanuel Llinares Managing Director
Head of Global Transfer Pricing
Paris
Geneva
London
+33 1 70 75 01 93
+41 22 819 94 94
+44 20 7659 8650
emmanuel.llinares@nera.com
Dr. Stuart L. Harshbarger Director White Plains, NY +1 914 448 4185 stuart.harshbarger@nera.com
Nihan Mert-Beydilli Associate Director Los Angeles +1 213 346 3035 nihan.mert.beydilli@nera.com
Dr. Vladimir Starkov Associate Director Chicago +1 312 573 2806 vladimir.starkov@nera.com
Tom Braukmann Principal Frankfurt +49 69 710 447 511 tom.braukmann@nera.com
Dr. Alexander Voegele Affiliated Consultant Frankfurt +49 69 710 447 501 alexander.voegele.affiliate@nera.com
Title Type Author
Comments on OECD Discussion Draft on the Revised Guidance on Profit Splits Regulatory Filing Emmanuel Llinares, Harlow Higinbotham, Nihan Mert-Beydilli, and Vladimir Starkov
Apple and the CCCTB: Can the European Commission Have Both? Published Article By Dr. Emmanuel Llinares and Guillaume Madelpuech
Economic Analysis for Developing Countries—Comments on the IMF, OECD, UN, and World B... Regulatory Filing By Dr. Vladimir Starkov, Sébastien Gonnet, and Guillaume Madelpuech
Field Tax Audits in Germany Published Article By Dr. Alexander Voegele and Philip de Homont
The take on comparables: A French perspective Published Article By Guillaume Madelpuech
Comments on the OECD Public Discussion Draft on the Attribution of Profits to Permane... Regulatory Filing By. Pim Fris and Guillaume Madelpuech
Separating intangible value by surveys Published Article By Philip de Homont and Alexander Voegele
Risks Redefined in Transfer Pricing Post-BEPS Book By Sébastien Gonnet
Discussion of the Amendments to Chapter IX of the OECD Transfer Pricing Guidelines on... Memo By Pim Fris and Guillaume Madelpuech
Practical treatment of transfer pricing adjustments Published Article By Philip de Homont and Alexander Voegele