I own a company in the UK and one abroad in the EU and the UK company owns a trademark that both companies are using. Can I license the trademark to the EU company and charge a fee for it from the UK company? Although I own both companies, just want to make sure it won't be an issue.
Replies (4)
Please login or register to join the discussion.
That's not a question for an accountant, nor even a 'normal' solicitor, but for a specialist trademark attorney.
+1
Is the trademark registered in UK or EU as well? Indeed, is it even registered in UK?
Why do you want to charge a fee? This moves profits from the unnamed EU member state(s) into the UK, which brings it into the realm of Transfer Pricing. In short, that means you have to market-rate based justification for the fee you charge.
Smaller companies are outside that regime in the UK. You would need to seek advice in the other country as to whether you are in the scope of their transfer pricing rules. It is a specialist field of tax advice but your existing advisers in the other country should at least know whether you are in scope.