Extract to table

the income with respect to such transfer or license shall be commensurate with the income attributable to the intangible

Under Swiss tax law, intercompany transactions between related parties must reflect terms and conditions that unrelated parties would have agreed to under comparable circumstances

The guidelines emphasize that the selection of the most appropriate transfer pricing method must be based on a thorough functional analysis of the controlled transaction, including the functions performed, assets employed, and risks assumed by each party

Article 12 of the Treaty provides that royalties arising in a Contracting State (here, the United States, as the source of the royalty payment) and paid to a resident of the other Contracting State (here, Switzerland, as the residence of Luminex AG) may be taxed in the Contracting State in which they arise, but the tax so charged shall not exceed a specified percentage of the gross amount of the royalties

Article 22 contains the LOB provisions that must be satisfied in order for Luminex AG to claim the reduced withholding tax rates under the Treaty

corporation) should satisfy the ownership and base erosion tests under the LOB article, though this analysis must be confirmed at Closing