Title Page
ABSTRACT
Contents
Chapter I: Introduction 12
1.1. The conception and function of transfer pricing 12
1.2. The content of Intangible assets 15
Chapter II: The Principle of Transfer Pricing of Intangible Assets 19
2.1. The Development of Transfer Pricing 19
2.2. The Arm's Length Principle 22
2.3.1. The Arm's Length Principle in U.S. 25
2.3.2. The Arm Length Principle in OECD 27
2.3. Global Formulary Apportionment 34
2.4.1. Formulary Apportionment in the U.S. 35
2.4.2. Formulary Apportionment in OECD 40
2.4. The Compare of Arm's Length principle and Global Formulary Apportionment 43
Chapter III: Transfer pricing method of intangible asset 48
3.1. Traditional Transaction Methods 50
3.1.1. Comparable Uncontrolled Price Method 51
3.1.2. Resale Price Method 54
3.1.3. Cost-Plus Method. 56
3.2. Transactional Profit Methods 58
3.2.1. Transactional Net Margin Method 58
3.2.2. Transactional Profit Split Method 60
3.2.3. Compare Profits Method. 62
3.3. The Compare of the Traditional Transaction Methods and Transactional Profit Methods 65
3.3.1. Determination of Arm's Length Price 66
3.3.2. The Application and Dispute of Compare Profits Method 68
3.3.3. Methods for the Inability to Determine the Value at the Time of the Transaction or Possible Subsequent Changes in Value 70
Chapter IV: GlaxoSmithKline Holdings (Americas) Inc. v. Commissioner of the IRS 72
4.1. The Basic Facts of Glaxo Case 73
4.2. The Issue of Glaxo Case 77
4.2.1. The Nature of Market-related Promotion Activities of GSK's US subsidiary 77
4.2.2. Whether the GSK US Subsidiary Is the owner of This Intangible Asset and How the Proceeds Should Be Distributed 78
4.3. The Demarcation and Ownership of Marketing Intangible Asset 79
4.4. The Analysis of Return of Value of Intangible Asset 88
4.5. The Analysis of Transfer Pricing Method of Intangible Asset 96
Chapter V: Glaxo Case of Intangible Assets Revelation of China's Transfer Pricing Regulation 99
5.1. Analysis of Current Situation of Transfer Pricing of Intangible Asset in China 100
5.1.1. The Legislation on the Transfer of Intangible Assets Related Provisions 100
5.1.2. Existing Problems 101
5.2. Proposal to the Problem Solving of Transfer Pricing of Intangible Assets in China 105
5.2.1. Clearly Defined Intangible Assets 107
5.2.2. Clear the Specific Application of the Transfer Pricing Method of Intangible Assets 107
5.2.3. Improve the Advance Pricing Agreement and Introduction of Post-Adjustment, the implementation of Advance Pricing and Post-Adjustment Dual-Track Parallel 109
5.2.4. Establish a Complete Intangible Asset Information Database 112
5.2.5. Take Part in the OECD's BEPS Action Plan and Strengthen International Exchanges and Cooperation 113
REFERENCE 115