Certain Important Aspects of Cost Contribution Arrangements in Financial Management

Cost contribution arrangements (CCAs) and Cost sharing agreements (CCAs) belong to the tools of modern finance management. Costs spent by associated enterprises on developing, producing or obtaining assets, services or rights (in general – benefits) are used for tax optimizing too. The main purpose of joint research and development, producing or obtaining benefits is to lower these costs as much as possible or to maximize the benefits. The problematic of transfer pricing and arm´s length principle in connection to CCAs, CSAs is mentioned in this article, too. Next, there is mentioned how to settle participation shares of the total cost and benefits contributions with respect to the OECD Transfer pricing for MNEs Guidelines and with respect to other significant regulations.