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Intercompany Agreement Transfer Pricing
"I need an Intercompany Agreement Transfer Pricing for our Dutch parent company and its German manufacturing subsidiary, covering the production and supply of automotive parts, to be effective from January 2025, using a cost-plus pricing methodology."
1. Parties: Identification of the group companies entering into the agreement, including registration details and jurisdictions
2. Background: Context of the agreement, relationship between parties, and purpose of the arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including specific transfer pricing terminology
4. Scope of Services/Goods: Detailed description of the intercompany transactions covered by the agreement
5. Transfer Pricing Methodology: Specification of the chosen transfer pricing method and justification for its selection
6. Pricing Terms and Calculations: Detailed explanation of how prices will be calculated and adjusted
7. Payment Terms: Terms and conditions for payment, including timing, currency, and payment methods
8. Documentation Requirements: Obligations regarding maintenance of transfer pricing documentation to comply with Dutch regulations
9. Term and Termination: Duration of the agreement and conditions for termination
10. Audit and Compliance: Rights and obligations regarding audits and ensuring compliance with transfer pricing regulations
11. Representations and Warranties: Standard warranties regarding capacity to contract and compliance with laws
12. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Force Majeure: Optional clause for circumstances preventing performance, particularly relevant for service agreements
2. Intellectual Property Rights: Required when the intercompany transactions involve IP transfers or licenses
3. Quality Control: Necessary for agreements involving manufacture or supply of goods
4. Performance Metrics: Relevant for service agreements where specific performance standards need to be measured
5. Confidentiality: Detailed confidentiality provisions if not covered in a separate group-wide agreement
6. Employee Matters: Required when the agreement involves staff secondment or shared services
7. Tax Gross-Up: Optional provisions for tax treatment of payments between parties
8. Working Capital Adjustments: Relevant for manufacturing or distribution agreements
1. Schedule 1 - Pricing Schedule: Detailed breakdown of prices, margins, or cost-plus calculations
2. Schedule 2 - Service Level Agreement: Detailed specifications of service levels and performance metrics
3. Schedule 3 - Calculation Examples: Examples of how transfer prices will be calculated in practice
4. Schedule 4 - Documentation Requirements: Specific documentation to be maintained by each party
5. Schedule 5 - Functional Analysis: Analysis of functions performed, risks assumed, and assets used by each party
6. Appendix A - Group Transfer Pricing Policy: Reference to or excerpt from the group's transfer pricing policy
7. Appendix B - Benchmarking Study: Summary of benchmarking analysis supporting the chosen transfer pricing method
8. Appendix C - Compliance Checklist: Checklist ensuring compliance with Dutch transfer pricing requirements
Authors
Agreement
Arm's Length Principle
Associated Enterprise
Benchmarking Study
Business Day
Commencement Date
Comparable Uncontrolled Price
Competent Authority
Controlled Transaction
Cost Base
Cost Plus Method
Direct Costs
Documentation Requirements
Effective Date
Financial Year
Force Majeure Event
Functional Analysis
Group
Group Transfer Pricing Policy
Indirect Costs
Intercompany Transaction
Mark-up
Net Cost Plus Margin
OECD Guidelines
Operating Margin
Parent Company
Performance Indicators
Pricing Methodology
Profit Level Indicator
Related Party
Resale Price Method
Service Provider
Service Recipient
Services
Subsidiary
Tax Authority
Term
Territory
Transfer Pricing Method
Transfer Pricing Range
Transfer Pricing Study
Transactional Net Margin Method
Working Capital Adjustment
Recitals
Definitions
Scope of Agreement
Transfer Pricing Methodology
Pricing Calculations
Payment Terms
Documentation Requirements
Compliance Obligations
Audit Rights
Information Exchange
Performance Obligations
Quality Standards
Risk Allocation
Representations and Warranties
Term and Duration
Termination Rights
Force Majeure
Confidentiality
Intellectual Property
Data Protection
Tax Compliance
Dispute Resolution
Governing Law
Amendment Procedures
Assignment
Severability
Entire Agreement
Notices
Counterparts
Manufacturing
Technology
Pharmaceuticals
Financial Services
Consumer Goods
Professional Services
Energy
Telecommunications
Automotive
Chemical Industry
Life Sciences
Retail
Software and IT
Electronics
Tax
Legal
Finance
Treasury
Compliance
International Tax
Transfer Pricing
Corporate Finance
Financial Planning
Risk Management
Tax Director
Transfer Pricing Manager
Chief Financial Officer
Financial Controller
Tax Manager
Legal Counsel
Head of Tax
International Tax Specialist
Corporate Lawyer
Finance Director
Compliance Officer
Treasury Manager
Group Financial Controller
Tax Compliance Manager
Senior Tax Analyst
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