The 2017 changes to the OECD TPG entailed the introduction of the DEMPE concept relating to the attribution of the intangible-related profits. The DEMPE concept, standing for development, enhancement, maintenance, protection and exploitation, has become one of the most widely discussed topics among practitioners as well as in the doctrine of transfer pricing. It has also gained the attention of local tax authorities, leading to its implementation into local laws or use in the interpretation of transfer pricing rules. Karol Dziwiński will present how the DEMPE concept was applied by the Indian authorities in a case involving a license agreement concluded between a domestic subsidiary of a foreign entity as well as the respective reaction of the local court. He will then put the considerations regarding the DEMPE functions in the wider context of the general discussion on the practical application of the concept.
