Guidance

Annex F: Relevant Overseas Entities revenue and cost profile

Published 10 January 2019

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Relevant Overseas Entities revenue and cost profile

Example A - IP Company Ruritania

Revenue or expenditure by source Third party revenue Own costs incurred locally Costs incurred direct with third parties UK related parties Manufacturing Co Elbonia Rest of world related parties Total
Royalty revenue by source 0 0 0 0 500 0 500
Sales revenue by source 0 0 0 0 0 0 0
Research and development costs by source 0 (15) 0 (10) 0 (10) (35)
EU regional marketing cost by source 0 (5) (5) (80) 0 (5) (95)
Other operating expenditure 0 (5) (5) 0 0 0 (10)
Operating profit/loss 0 (25) (10) (90) 500 (15) 360

Example B - Manufacturing Company Elbonia

Revenue or expenditure by source Third party revenue Own costs incurred locally Costs incurred direct with third parties IP co Ruritania UK related parties Rest of world related parties Total
Sales revenue by source 0 0 0 0 400 800 1,200
Tolling and contract manufacturing fees by source 0 0 (20) 0 (30) (30) (80)
Other cost of goods sold by source 0 (300) (200) 0 0 0 (500)
Royalty costs by source 0 0 0 (500) 0 0 (500)
Other operating expenses by source 0 (20) (10) 0 (11) (10) (51)
Operating profit/loss 0 (320) (230) (500) 359 760 69

Example C - Procurement Company Panau

Revenue or expenditure by source Local ‘own’ entity costs Third party costs
incurred by entity		 UK Rest
of world		 Total
Sales by source 0 0 110 880 990
Commissions by source 0 0 5 80 85
Cost of goods by source 0 (900) 0 0 (900)
Other operating expenditure by source (5) 0 (5) (3) (13)
Operating profit level (5) (900) 110 957 162
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