From principal to profit split

Thu Mar 31 17:14:36 EDT 2016
By Philip de Homont and Alexander Voegele

In the sixth of a series of articles in International Tax Review on intangibles, NERA Principal Philip de Homont and Affiliated Consultant Dr. Alexander Voegele discussed how to address low margins through a profit split system.

The article, “From principal to profit split,” which appeared in the March 2016 issue of the tax magazine addressed the risks and challenges for multinational companies using a simple ‘principal’ transfer pricing system, particularly in low margin situations, by analyzing a real world case profile of a client.