Category: Cost Contribution Arrangements
A Cost Contribution Arrangement (CCA) is a framework agreed among business enterprises to share the costs and risks of developing, producing or obtaining assets, services, or rights, and to determine the nature and extent of the interests of each participant in those assets, services, or rights.
A CCA is a contractual arrangement rather than necessarily a distinct juridical entity or permanent establishment of the participants. In a CCA, each participant’s proportionate share of the overall contributions to the arrangement will be consistent with the participant’s proportionate share of the overall expected benefits to be received under the arrangement.
While Cost Contribution Arrangements for research and development of intangible property are perhaps most interesting, CCAs need not be limited to such activities. CCAs could exist for any joint funding or sharing of costs and risks, for developing or acquiring property or for obtaining services.
See on this issue TPG 2017, Chapter VIII