Page 486 - Large Business IRS Training Guides
P. 486
Real World – Pre-TCJA Paradigm (cont’d)
1
1a. Upfront transfer of valuable IP
via Treas. Reg. 1.482-7 Platform
US Global Parent Contribution Transaction
(US Rate 35%) IRC 367(d) transfer
IRC 721(c) transfer (to partnership)
or even a direct IP sale
CFC
Ltd Risk Dist Co/s Foreign IP HC
Various Countries Bermuda
Tax Rate 30% Tax Rate 0%
1b. On-licensing
Principal Co Ltd Risk Mfg Co
Netherlands Hong Kong
Tax Rate 25% Tax Rate 16.5%
40
