Document background
The Intercompany Service Agreement is essential for corporate groups operating in Saudi Arabia who need to formalize and document the provision of services between related entities. This agreement is particularly important in the context of Saudi Arabian regulatory requirements, where proper documentation of related party transactions is crucial for corporate governance, tax compliance, and transfer pricing purposes. The document should be used whenever one group entity provides services to another, whether these are management services, technical support, shared services, or other forms of operational support. It must comply with Saudi Arabian law, including Sharia principles, and typically includes detailed service descriptions, performance metrics, pricing mechanisms, and governance frameworks. The agreement is particularly relevant in the context of Saudi Arabia's increasing focus on transfer pricing documentation and related party transaction transparency.
