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. Yves Hervé Senior Managing Director Frankfurt +49 69 710 447 508
Dr. Harlow Higinbotham Senior Managing Director Chicago +1 312 573 2803
Dr. Emmanuel Llinares Senior Managing Director
Head of Global Transfer Pricing
+33 1 70 75 01 93
+41 79 517 6895
+44 20 7659 8650
Philip de Homont Managing Director Frankfurt +49 69 710 447 502
Dr. Niraja Srinivasan Managing Director Washington, DC +1 202 466 9290
Dr. Vladimir Starkov Managing Director Chicago +1 312 573 2806
Tom Braukmann Director Frankfurt +49 69 710 447 511
Alexis Jin Consultant Chicago +1 312 573 4804
Dr. Alexander Voegele Affiliated Consultant Frankfurt +49 69 710 447 501
Title Type Author
Referentenentwurf zur Funktionsverlagerungsverordnung: Erhöhtes Risiko von Streitverf... Published Article Dr. Jens Rubart and Ronald Bernstein
Transfer Pricing Solutions for Intragroup Shared Services White Paper Dr. Niraja Srinivasan, et al.
‘Coca-Cola’ vs. Section 482: Is It Time to Refresh the Regulatory Guidance? Published Article Dr. Harlow Higinbotham and Dr. Niraja Srinivasan
The Future of Transfer Pricing Published Article Dr. Niraja Srinivasan, et al.
Going digital multinationals: Navigating economic and social imperatives in a post-pa... Published Article Dr. Niraja Srinivasan, et al.
NERA Experts Contribute Chapter to "The Future of the Profit Split Method" Book Dr. Harlow Higginbotham and Dr. Vladimir Starkov
Transfer Pricing Roundtable in Financier Worldwide. Expert QA Dr. Vladimir Starkov and Philip de Homont
Amount B: Facts and Circumstances Matter—Even for Routine Distributors Published Article Dr. Harlow Higinbotham, Dr. Niraja Srinivasan, and Dr. Vladimir Starkov
Dr. Yves Hervé’s Interview in Financier Worldwide Report Dr. Yves Hervé
Taxation of the Digital Economy: Analysing User Base Value Published Article Dr. Yves Hervé and Philip de Homont