The DEMPE Concept and Its Role in Domestic Transfer Pricing Practice – Report on Italy

This article examines the relevance within the Italian transfer pricing framework of the approach prescribed by the OECD Guidelines with respect to intercompany transactions involving the development, enhancement, maintenance, protection and exploitation of intangible assets. By analysing the domestic law, the administrative guidance provided by the Italian Tax Administration and recent case law, the article provides an overview on how the OECD’s transfer pricing principles on intangibles have been progressively adopted in Italy, despite the absence of an explicit codification of the DEMPE approach within the Italian legislation.This article is part of a special issue of the International Transfer Pricing Journal on the DEMPE concept in domestic transfer pricing practice. The other articles include the General Report and contributions on Belgium, France, Germany, Ireland, Korea, Luxembourg, the Netherlands, Spain and the United States.