Although the nature of these contracts is discussed, it is possible to identify at least three distinctive characteristics between the parties based on the structured structure: (i) cost-sharing agreement; (ii) intragroup service agreement; and (iii) cost-contribution agreement. (4) Date and mode of choice. The choice in this paragraph, d) (2) (iii) (b) (B) is made by an explicit reference to the choice in the written cost-sharing agreement required in paragraph b) 4 of this section, or to a written amendment to the cost-sharing agreement reached with the Commissioner`s agreement in accordance with paragraph d) (2) (C) of this section. In the case of a qualified cost-sharing agreement reached on August 26, 2003, the election must be amended in writing by the last due date (for renewals) of a federal income tax return of a controlled member for the first taxable year beginning after August 26, 2003, and approval from the Commissioner is not required. Although these are legal contracts justified by the need to optimize costs and standardize procedures in all areas, the tax consequences of the agreements have been discussed. This indicates whether group-to-group operations are located exclusively in Brazil or where these activities are centralized abroad. (ii) performance measurement. In order to assess the share of a controlled participant in the expected benefits of covered intangible assets, it is necessary to measure the amount of reasonably expected benefits from hedged intangible assets on a consistent basis for all of these participants. See (f) (3) (iii) (E), example 8 of this section. When a controlled member transfers intangible assets to another controlled subject, the participant`s benefits on transferred intangible assets must be measured on the basis of the purchaser`s benefits, taking into account any consideration that the purchaser pays to the controlled subscriber (for example. B a licence fee). Expected performance is measured either directly by reference to estimated additional revenues, or to the costs saved by the use of covered intangible assets, or on an indirect basis, on the basis of certain measures that can reasonably be assumed to be related to the costs saved.
These indirect bases for measuring expected benefits are described in paragraph 3, point iii), in this section.