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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.