Transfer Pricing: Entitlement to Intangible Related Returns

Abstract: The entitlement to the income arising from the development and use or transfer of the intangible property within the MNE group members has been contentious issues for transfer pricing purposes. This paper aims to discuss and analyse the concept of entitlement to intangible related returns, considering the application of the arm’s length principle with regard to allocation of the benefits as provided within the Article 9 of the OECD MTC. Following the importance of the future enhancement of the harmonization of the legislation of the countries with the OECD principles, the OECD documents are considered, especially the Chapters I-III, VI, VIII and IX of the OECD TPG, as well as the Discussion Draft with regard to Chapter VI will be observed.