Intra Group Services Agreement Template Uk

10 04 2021

The regular introduction and updating of intercompany agreements can be a complex and costly process. However, not doing so is usually a bad economy. The parties agreed that the supplier was providing services to the customer on the terms set out in this agreement. The regular introduction and updating of intercompany agreements can be a complex and costly process. However, not doing so is usually a bad economy. Intercompany agreements should not be complicated – they must be simple for stakeholders to fully understand them – but, like everything else, they must be properly planned and implemented and supported by appropriate existing systems. The supplier and the customer are members of the same group. The role of multinational companies is different: it is a matter of designing, implementing and maintaining appropriate business structures, effective ICA conditions and ongoing systems to facilitate compliance with transfer pricing. It is also important that these structures and systems not only support the Group`s transfer pricing objectives, but also meet its business, regulatory and corporate governance requirements.

This means that a comprehensive and multi-functional approach is essential. When compiling intercompany agreements on transfer pricing, tax advisors must take into account the following: as in many tax areas, transfer pricing is closely linked to the legal structures and contracts in which intragroup transactions are carried out. This is what the OECD recently highlighted in the latest edition of its transfer pricing guidelines. The 2017 edition once again underlines the fundamental importance of legal analysis and intercompany agreements in resolving transfer pricing issues. It is worth quoting verbatim what is set out in the guidelines for 2017: “It is important that ex ante risk-taking of the contract provides clear evidence of the obligation to take risks before the risk results occur. This evidence is a very important part of the tax administration`s analysis of commercial or financial risk transfer prices, since in practice an audit by the tax authorities can take place years in advance after the decision of the related companies and when the results are known.” The supplier provides [insert a description of services] to other companies. As in many tax areas, transfer pricing is closely linked to the legal structures and contractual terms in which intra-group transactions are conducted. Groups that do not have appropriate and signed intercompany agreements are in discussions with local tax authorities to comply with transfer pricing.

Intercompany SERVICE AGREEMENT (“Agreement”) service agreement that came into effect from and under [identifying parties] from the date of entry into force, each of the above companies being a member of a group of general insurers and all LexisPSL and LexisLibrary content, with the exception of Practice Compliance, Practice Management and Risk and Compliance, are tailored to your specific needs. To discuss the trials of these LexisPSL services, please email customer service via our online form.


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