During this call Lenka Pól Brožková from LTA Partners will be presenting a brief case study on licence fees.
Many multinationals have diversified their various functions into different countries to be as close to their customers as possible. As a result, it is not uncommon for a group contract manufacturing company to sell a product directly to an external customer. Customer relationship management, R&D, product portfolio management, or even supply management may be, however, managed by the parent company. In these cases, how to allocate an appropriate portion of the sales price to the parent company so that the practice is defensible also before the tax authorities concerned? Could the concept of a 'variable licence/service fee' be the answer to this question?
Nicki Lynn
Operations Manager
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