The Intercompany Balance Confirmation Letter is a critical financial control document used in corporate groups to verify and confirm outstanding balances between related entities. Under Dutch law, this document serves as formal confirmation of intercompany financial positions, typically prepared at month-end, quarter-end, or year-end periods. It supports accurate financial reporting, assists in audit processes, and helps maintain compliance with Dutch accounting standards and regulatory requirements. The letter includes specific balance amounts, relevant dates, and may detail significant transactions or reconciliation items. It's particularly important for consolidated financial statements and tax reporting purposes, serving as evidence of agreement between related parties regarding their financial positions.

1. Letter Header: Company letterhead, date, and reference number

2. Addressee Details: Full legal name and address of the receiving entity

3. Subject Line: Clear indication that this is a balance confirmation letter and the relevant period

4. Balance Statement: Clear statement of the intercompany balance amount as of the specified date

5. Balance Details: Breakdown of the main categories making up the balance

6. Request for Confirmation: Formal request for the recipient to confirm the stated balance

7. Response Instructions: Clear instructions on how and when to respond to the confirmation request

8. Signature Block: Space for authorized signatory from both companies