Gustavo Sanchez-Gonzalez, Armando Cabrera-Nolasco and Katia Huezo of Baker McKenzie describe the key concepts surrounding marketing intangibles and the way tax regulations and tax authorities in the region are tackling these issues.
The transfer pricing (TP) landscape in Latin America has been constantly evolving ever since the introduction of the first TP regulations in Mexico and Argentina around 25 years ago.
Following the global trends in the international tax arena shaped by landmark TP court cases in the US and in Europe, as well as the evolving TP guidance published by the OECD, the concept of marketing intangibles has become a fundamental one when it comes to TP audits in Latin America.
Marketing intangibles are a focus point in virtually all TP audits as it is viewed as a key element in determining the allocation of taxable income among members of multinational groups conducting intercompany transactions.
In view of the relevance of these trends for companies doing business in Latin America, this article provides an overview of the key concepts surrounding marketing intangibles and the way tax regulations and tax authorities in the region are tackling these issues. Practical considerations are provided at the end of the article.
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