Transfer Pricing & BEPS

BEPS- Solve Structuring Questions

By March 9, 2016August 8th, 2023No Comments

The transfer pricing world has been taken by storm from the OECD’s implementation of its BEPS initiative. Leaving most practitioners concerned with the uncertainty of this new landscape. Their chief concern stems from what this means for their firms as well as how they will be able to mitigate the risks associated with the implementation of BEPS.

At the forefront of this concern is the new need to validate your transactions by proving that third parties would agree to similar terms.

Fortunately, ktMINE has been preparing for this and has an application that contains the data you need to support your transactions. In addition, ktMINE can offer sample contracts to guide you on structure and thus reduce your risk in this new landscape.

Through ktMINE’s robust database of transactions, analysts can gain access to the full picture of data to solve difficult structuring questions. Some of the questions this can help address are below:

  • How do third parties agree to fund R&D and how is ownership of any existing and subsequent intellectual property treated?
  • How is a true contract manufacturing agreement structured?
  • What type of compensation terms are found in third-party distribution agreements?
  • Would a payment structure differ in a developing country versus a developed one?
  • Do licensors or licensees bear the cost of advertising expenditures?

Using the bolded question above we have included a sample summary found within our database. Through a simple keyword search for the term “developing country”, we were able to capture the following agreement summary immediately.


BEPS image

As you can see from this example the first section refers directly to the ability to vary a payment structure based on whether or not the company is doing business with a developing or developed country. Now, if a tax authority wanted you to prove whether or not third parties would agree to pay different rates based on the development status of the country you could provide this agreement in your documentation.

ktMINE then goes a step further by offering access to 15 sample agreements to guide you in your research. These agreements take the guesswork out of how to structure an agreement in an effort to simplify your life.

Benefit from any of these samples such as Toll Manufacturing, Buying Agent Services and many more…

·         Manufacturing Services ·         Research & Development
·         Trademark Licensing ·         Technology Licensing
·         Buying Agent Services ·         Toll Manufacturing
·         R&D Cost Sharing ·         Marketing Distribution
·         Administrative Services ·         Intangible Property
·         Contract Manufacturing ·         Confidentiality
·         Commissionaire Services ·         Commission Agent
·         International Distributor & Marketing Services


In summary, BEPS has made it so that you must validate your intercompany transactions structures with third-party data. Thankfully, ktMINE has been built to comply with our Sample Agreements and the creation of our Agreements application featuring over 100,000 transactions in order to support your analysis.

Never fear an audit again by ensuring you have the full picture by leveraging the power of ktMINE’s tools.

Contact us for more information on this application or the sample contracts.