DEMPE Concept
- Home
- DEMPE Concept
Overview
The DEMPE concept based on Chapter VI of the OECD Guidelines and stands for Development, Enhancement, Maintenance, Protection, and Exploitation (“DEMPE”). It is a framework used in transfer pricing to determine the allocation of profits among related entities involved in the development, enhancement, maintenance, protection, and exploitation of intangible assets. The DEMPE concept emphasizes the importance of aligning profits with the economic contributions made by each entity in the value chain of intangible assets.
We provide advisory services that are tailored to the unique circumstances and needs of an individual client with regard to the DEMPE concept.
How we assist you
- Conduction of a comprehensive analysis of the functions performed, risks assumed, and decisions made by related entities in relation to intangible assets
- Preparation of transfer pricing documentation that aligns with the DEMPE concept
- Assessment of the risks associated with the development, enhancement, maintenance, protection, and exploitation of intangible assets
- Review of existing transfer pricing policies, agreements, and documentation to ensure alignment with the DEMPE concept
