tailieunhanh - Ebook Transfer pricing methods - An applications guide: Part 2

(BQ) Part 2 book "Transfer pricing methods - An applications guide" has contents: Transfer pricing for services, cost sharing, profit methods, organization for economic cooperation and development guidelines, transactional net margin method, transfer pricing penalties, advanced transfer pricing,.and other contents. | CHAPTER 8 Transfer Pricing for Services By Kenneth Klein and Philip Karter OVERVIEW nder Section 482 of the Internal Revenue Code (IRC),1 the Internal Revenue Service (IRS) has authority to allocate income among members of a controlled group to reflect an arm’s-length charge for marketing, managerial, administrative, technical, and other Given the increasing importance of services in the world economy, and the volume of intercompany services performed within multinational groups, it is perhaps surprising that the body of law applicable to the transfer pricing of services is quite small. The transfer pricing of services has received far less attention by the IRS than transfer pricing for sales of tangible property or licensing of intangible property, although extensive guidance in the form of proposed IRS regulations was said to be imminent at the time of this Applying the arm’s- U 1 All section references are to the Internal Revenue Code or to the regulations promulgated thereunder. 2 Treas. Reg. § (b)(1). 3 As this book was going to press, Treasury and the IRS released proposed regulations under section 482 addressing the treatments of controlled services transactions (the “Proposed Regulations”). 68 Fed. Reg. 53448 (Sept. 10, 2003). The Proposed Regulations also amend existing regulations addressing the allocation of income from intangibles when a controlled party contributes to the value of an intangible owned by another controlled party. See Treas. Reg. § (f)(3)(i). The Proposed Regulations are proposed to be effective for taxable years beginning on or after the date that final regulations are published in the Federal Register. Prop. Treas. Reg. § (n). An objective of the Proposed Regulations is to conform the methods applicable to transfer pricing for services with the methods applicable to tangible or intangible property. In addition, the proposed Regulations replace the cost safe harbor .