Intercompany Service Agreement

Intercompany agreements are contracts concluded between two or more undertakings or activities owned by the same parent company. It is a contract that deals with internal transactions of sales or transfers of goods and services between companies. The reason for an intercompensation agreement is to deal with certain factors of the parent company with the cooperation of both divisions of the same company. However, there are fundamental requirements that must be included in any intercompany contract: Apple`s shared services center in Manila provides administrative services for Apple Hong Kong and Apple China. Transfer pricing agreements between related companies need to be formalised in intercompany agreements in order to make them legally binding, comply with transfer pricing legislation and ensure an adequate line of defence against challenges from tax authorities. If you don`t, your business is exposed to serious and unnecessary risk…

  • Facebook
  • Twitter
  • Google +
  • LinkedIN
Tagged in