In that judgment, it should be pointed out that, in the case of cost-sharing as a result of the appointment of a third party service provider by the central undertaking, such a situation would not be an easy reimbursement and would lead to the taxation of the transfer sent abroad. (1) In general. With regard to share-based remuneration in the form of options on listed shares, the controlled participants may decide, under a qualified cost-sharing agreement, to take into account all operating expenses attributable to those stock options, together with the fair value of the stock options, that is recorded in the audited financial statements as an expense on income or disclosed in footnotes to those financial statements; provided that such statements are made in accordance with accounting standards generally accepted by the United States by or on behalf of the company issuing the listed shares. (3) Reporting obligations. A controlled participant must attach to its U.S. income tax return a statement that it participates in a qualified cost-sharing agreement and list the other controlled participants in the agreement. A controlled participant who is not required to file a U.S. income tax return must ensure that such a return is appended to Schedule M of a Form 5471 or Form 5472 relating to that participant. (iii) service contracts (there is often a profit margin remuneration, while for cost-sharing agreements there is no profit, only a refund).
(C) Adjustments between foreigners. Notwithstanding the restrictions on adjustments set out in paragraph (f) (3) (iv) of this Section, adjustments to the share of costs on the basis of an unreliable projection may only be made among uncontrolled participants from abroad, provided that the difference between actual and expected benefits results in a substantial reduction in U.S. tax. `In view of the foregoing, in a contract for the apportionment of costs and expenses signed between undertakings of the same economic group in which residents and non-residents of the country participate, the activities made available to the resident legal person by a non-resident legal person must be registered with Siscoserv where the activity in question is provided for by NBS. It is a transaction involving an operation that results in a change in the own funds of the legal person, provided that the repayment offered in return for the activity provided represents a charge that necessarily involves a change in own funds. Under the cost-sharing agreement, the subcontracting of certain services is carried out by the central legal person for the benefit of the other members, the resulting mandatory report is of the nature of an authentic provision of services, the delegated third party being the provider and the legal persons of the group as policyholders. who actually benefit from the services. . . .