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Intercompany Agreement Transfer Pricing Template for Netherlands

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Key Requirements PROMPT example:

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."

Document background
The Intercompany Agreement Transfer Pricing is essential for multinational companies operating in the Netherlands to formalize and document their transfer pricing arrangements. This agreement type is particularly crucial given the Netherlands' strict transfer pricing regulations and documentation requirements. It serves as a fundamental document demonstrating compliance with the arm's length principle, Dutch transfer pricing rules, and OECD guidelines. The agreement typically includes detailed pricing methodologies, functional analyses, risk allocations, and specific compliance procedures. It is required when group companies engage in cross-border transactions involving goods, services, intellectual property, or financing arrangements. The document helps protect against transfer pricing audits and provides a framework for consistent application of transfer pricing policies across the group while maintaining compliance with Dutch tax authorities' requirements.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses






























Relevant Industries

Manufacturing

Technology

Pharmaceuticals

Financial Services

Consumer Goods

Professional Services

Energy

Telecommunications

Automotive

Chemical Industry

Life Sciences

Retail

Software and IT

Electronics

Relevant Teams

Tax

Legal

Finance

Treasury

Compliance

International Tax

Transfer Pricing

Corporate Finance

Financial Planning

Risk Management

Relevant Roles

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

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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