Document background
The Intercompany Cost Plus Agreement is essential for corporate groups structuring their internal service arrangements under Danish law. It is typically used when one group entity provides services to another and needs to establish a compliant pricing mechanism based on costs plus a markup. The agreement ensures compliance with Danish transfer pricing regulations and OECD guidelines while documenting the arm's length nature of the arrangement. This document is crucial for tax compliance, audit defense, and operational clarity between group entities. It includes comprehensive details about service scope, cost calculations, markup determination, and documentation requirements, making it a fundamental instrument for managing intercompany relationships and demonstrating transfer pricing compliance to tax authorities.
