The changes introduced to the Transfer Pricing Guidelines in 2017 encompassed the DEMPE acronym into the scope of the rules for attributing profit derived from the exploitation of an intangible asset. DEMPE means development, enhancement, maintenance, protection, and exploitation of an intangible. It is one of the most discussed acronyms both in academia, law offices and consulting firms dealing with transfer pricing issues and has also gained prominence among tax authorities. The present study deals with the DEMPE functions and their practical application in the allocation of profits in relation to transactions among multinational enterprises that involve intangibles. In a first phase, we will contextualise the DEMPE acronym, seeking to clarify its meaning, content, and scope as well as to address its impacts, particularly in times of economic downturn. Next, we will go through the six-step analysis of a transaction involving intangibles. The challenges that emerge in the practical application of the acronym mentioned above will be clarified throughout this dissertation through the enumeration of different doctrinal positions, pointing to the positions that seem more sustainable to us. This research aims to answer the following question: How to input profits attributable to intangibles to increase the resilience of domestic tax systems against BEPS?
Date of Award | 12 Dec 2022 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | João Félix Pinto Nogueira (Supervisor) |
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- Transfer pricing
- Transactions involving intangibles
- DEMPE functions
- Profit allocation
- Value creation
Intangible-related profit allocation: increasing the resilience of tax systems against BEPS
Carneiro, P. S. (Student). 12 Dec 2022
Student thesis: Master's Thesis