Inter-Company Transfer Brand Licensing

TP Week has a good article about brand licenses as part of inter company transfer pricing.

The whole issue is under pressure, just watch the debate in the UK for example about Starbucks.

Here are the four main questions to be considered:

1.  Tax deductibility of license fees: Are license fees, paid for the use of trademarks, tax deductible by a German based company if the trademark is equal to the group name and, if so, under which conditions? 2.  Reason for license payments: Does the exhaustion doctrine need to be applied for intercompany transactions?
3.  Determination of the brand value: Are there major differences between international brand valuation standard (ISO 10668) and the specific German brand valuation standard (IDW S5)?
4.  Appropriateness of the license fee: Will rules of thumb for the determination of the appropriateness of a license fee-rate be recognised by German tax authorities in the light of the http://www.oecd.org/ctp/transferpricing/46987988.pdf OECD discussion draft for intangibles?

Answers and more here http://www.tpweek.com/Article/3118254/Brand-licensing-structures-and-challenges-from-a-German-perspective-.html