Everyone involved in conducting clinical trials recognises that ensuring investigator payments are processed in an accurate and timely manner is crucial to the successful conduct of a clinical trial.
This is not a straight forward task, as a variety of regulatory, legal and operational factors need to be considered when developing an investigator contracting and payment model. One area which does not always get sufficient focus from sponsors at the planning stages is tax management. This is understandable as the complexity of the non-tax factors that impact the payment model are already significant without layering on the ever-evolving global tax rules.
A proactive approach can simplify the management of taxes, minimise the amount of work required by the sponsor and ensure compliance with local laws and regulations. It is important to note that the optimal solution in any situation needs to consider many variable factors and therefore it is impossible to cover all potential circumstances.
The primary focus of this paper is value-added tax/goods and services tax (referred to as VAT for the purposes of this article) as this is where we typically see the biggest financial risk for sponsors, most of which can be mitigated by proactive consideration of the contracting model.
Investigator Payments and Tax
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