The tax authorities are not convinced that Pierre Plastic complies with transfer pricing laws. It intends to examine (i) whether the allocation of risks, assets and functions on which transfer pricing agreements were based is consistent with actual agreements and (ii) whether the associated companies have agreed to the transfer pricing agreements. Without intercompany agreements, Pjotr Plastic must now provide further evidence and convince the tax authorities that its transfer pricing position is in fact what it claims – potentially a lengthy and costly discussion. It could have been avoided… To minimize the challenges posed by global tax authorities, ONESOURCE Transfer Pricing Intercompany Agreements helps you effectively centralize and manage intercompany agreements so they can be properly generated, updated and analyzed. Optimize the creation and implementation of transfer pricing agreements with a central repository with contract management and electronic signature functions. If you need price-compliant intercompany agreements for your controlled transactions, we have something for you… Corporate transfer pricing agreement. For the provision of low-risk distribution activities. In practice, companies often neglect contractual obligations between companies.
And even when intercompany agreements are concluded, they are often poorly drafted, obsolete and do not reflect the economic reality of controlled transactions. The lack of intercompany (quality) agreements can be a risk for many reasons. Here are the three main ones: import existing intercompany agreements and generate standard templates that can be customized for each global transaction in any jurisdiction. Avoid repeated data entry and use built-in logic to speed up the design process. There is no need to restart contracts from scratch, and the reference rules will help you correct errors. … We`ve created templates for the most common business-to-business transactions. Models are not a one-off approach. They must be adapted and adapted to each situation. Intercompany agreements are legal agreements that define the conditions under which services, products and financial support are provided between related parties.
For internationally active groups, intercompany agreements provide the essential basis for compliance with transfer pricing rules (international rules that determine where profits are taxed) and to minimize the risk of double taxation. One day, the tax authorities knock on the door to find out about transfer pricing rules and their documentation.