Tax Glossary Definition
Buy-in Payment – A payment made by one group entity to another, usually within a multinational enterprise, to obtain the right to use or benefit from intangible assets that already exist, such as patents, trademarks, or proprietary technology. The payment represents the arm’s length value of accessing these assets and ensures fairness when entities share or transfer intellectual property within the group.
Example: When a subsidiary becomes part of a cost-sharing arrangement, it makes a buy-in payment to the parent company for the right to use its established patents and technological know-how.
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