Hard-to-Value Intangibles

Summary

This practice note discusses the U.S. transfer pricing rules for transactions involving the transfer of hard-to-value intangibles. For transactions subject to U.S. income taxation, the transfer pricing rules for hard-to-value intangibles can be found in I.R.C. Section 482 and Treasury Regulations Sections 1.482-4(a), 1.482-4(f)(2), 1.482-4(f)(6), and 1.482-7(i)(6), which together embody the "commensurate with income" (CWI) approach to hard-to-value intangibles.