The Intercompany Service Agreement is essential for corporate groups operating in Belgium to formalize service arrangements between affiliated entities. This document is typically used when one group company provides services such as IT support, administrative functions, management services, or technical assistance to another group company. It must comply with Belgian corporate law, tax regulations (particularly transfer pricing rules), and EU requirements including GDPR. The agreement serves multiple purposes: documenting the service relationship, ensuring regulatory compliance, establishing clear operational parameters, and protecting both parties' interests while maintaining group efficiency. It's particularly important for tax compliance, audit purposes, and demonstrating arm's length arrangements to regulatory authorities.
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1. Parties: Identification of the group companies entering into the agreement - service provider and service recipient
2. Background: Context of the agreement, relationship between the parties, and general purpose of the arrangement
3. Definitions: Key terms used throughout the agreement, including specific service definitions, group company references, and technical terms
4. Services: Detailed description of services to be provided, service levels, and delivery requirements
5. Service Provider Obligations: Key responsibilities and commitments of the service provider, including quality standards and reporting
6. Service Recipient Obligations: Responsibilities of the service recipient, including cooperation and information provision
7. Fees and Payment: Pricing structure, payment terms, and transfer pricing compliance provisions
8. Intellectual Property: Ownership and licensing of IP created or used in providing the services
9. Confidentiality: Protection of confidential information exchanged between group companies
10. Data Protection: GDPR compliance and data handling requirements
11. Term and Termination: Duration of the agreement and termination rights
12. Liability: Limitation of liability and indemnification between group companies
13. General Provisions: Standard boilerplate clauses adapted for intra-group context
1. Personnel: Required when services involve dedicated staff or secondments between companies
2. Quality Control: Needed for services requiring specific quality standards or regulatory compliance
3. Audit Rights: Important when services are subject to regulatory oversight or specific compliance requirements
4. Business Continuity: Required for critical services that need disaster recovery planning
5. Change Control: Useful for long-term agreements where service requirements may evolve
6. Tax Compliance: Detailed tax provisions when services have specific tax implications or cross-border elements
7. Service Credits: Optional mechanism for service level failures, if appropriate for the group structure
8. Group Company Accession: Mechanism for other group companies to join the agreement if needed
1. Service Description Schedule: Detailed specifications of each service to be provided
2. Service Levels: Specific performance metrics and standards for service delivery
3. Charges: Detailed pricing structure, including calculation methods and transfer pricing documentation
4. Key Personnel: List of key staff involved in service delivery, if applicable
5. Technical Requirements: Technical specifications and requirements for service delivery
6. Governance and Reporting: Service management procedures and reporting requirements
7. Data Processing Agreement: GDPR-compliant data processing terms if personal data is processed
8. Business Continuity Plan: Detailed continuity procedures for critical services
9. Group Companies: List of group companies eligible to participate in the agreement
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