Transfer pricing controversies and post-BEPS Soft-Law: the complex management of marketing intangibles by MNEs
DOI:
https://doi.org/10.51302/rcyt.2023.18803Keywords:
Transfer Pricing, BEPS project, intangibles, trademarks, related transactions, corporate income taxAbstract
This article analyzes a recent ruling of the Central Economic-Administrative Court (TEAC) reviewing a transfer pricing regularization of a parent company of a Spanish listed insurance group in relation to its Corporate Income Tax. The TEAC’s ruling, which upheld the tax adjustment, highlights interesting issues on current Spanish transfer pricing practice, particularly in relation to the approach adopted by the tax administration on the tax treatment of marketing intangibles by Multinational Enterprises (MNEs) in a post-BEPS context.
The article also includes some first reflections on the functionality and scope of the so-called «DEMPE functions» that were incorporated in 2017 to the OECD Transfer Pricing Guidelines; the new chapter VI of the referred Guidelines dedicated to Intangibles, included significant changes and elements connected to the value creation principle, in line with the objectives pursued by the OECD/G20 BEPS 1.0 Project (2012-2015).
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