What are intangibles

BlogWhat are intangibles

In order to better understand what royalties are, it is important to define the term ‘intangibles’. According to the definition given in paragraph 6.6 of Section A of the final report of Action 8 published by OECD on 5th October of 2015 under the Base Erosion and Profit Shifting (BEPS) initiative: ‘Intangible is intended to address something which is not a physical asset or a financial asset, which is capable of being owned or controlled for use in commercial activities, and whose use or transfer would be compensated had it occurred in a transaction between independent parties in comparable circumstances’.

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