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Intercompany Settlement Agreement Template for Singapore

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Key Requirements PROMPT example:

Intercompany Settlement Agreement

"Need an Intercompany Settlement Agreement under Singapore law to document and formalize the settlement of outstanding balances of SGD 2.5 million between our parent company in Singapore and our Malaysian subsidiary, with quarterly payment installments starting from March 2025."

What is a Intercompany Settlement Agreement?

The Intercompany Settlement Agreement is essential for multinational corporations and company groups operating in Singapore to properly document and formalize settlements between their related entities. This document type is particularly crucial when companies need to resolve internal financial obligations, reconcile accounts, or settle intercompany disputes. It must comply with Singapore's strict corporate governance requirements, transfer pricing regulations, and tax laws. The agreement typically includes detailed payment terms, tax considerations, and appropriate corporate authorizations, making it a vital tool for maintaining transparent and compliant intercompany relationships.

What sections should be included in a Intercompany Settlement Agreement?

1. Parties: Identification and details of the companies involved in the settlement

2. Background: Context of the settlement, including history of transactions or disputes

3. Definitions: Key terms used throughout the agreement

4. Settlement Amount: Agreed settlement sum and payment terms

5. Payment Terms: Timeline and method of payment

6. Release and Discharge: Mutual release of claims

7. Governing Law: Specification of Singapore law as governing law

What sections are optional to include in a Intercompany Settlement Agreement?

1. Tax Provisions: Specific tax treatment and obligations - include when tax implications need clarification

2. Confidentiality: Non-disclosure obligations - include when settlement terms should remain private

3. Future Cooperation: Terms for ongoing business relationship - include when parties will continue business relations

4. Dispute Resolution: Mechanism for resolving future disputes - include when specific dispute resolution procedures are needed

What schedules should be included in a Intercompany Settlement Agreement?

1. Payment Schedule: Detailed breakdown of payment installments if applicable

2. Transaction History: List of relevant historical transactions being settled

3. Corporate Authorizations: Board resolutions or other corporate approvals

4. Tax Calculations: Detailed tax implications and calculations if relevant

Authors

Alex Denne

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

Relevant legal definitions





























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Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, validity of agreements, consideration requirements, and contractual capacity in Singapore

Companies Act (Cap. 50): Regulates corporate authority, capacity, related party transactions, directors' duties, and financial assistance provisions

Income Tax Act: Covers transfer pricing requirements, tax implications of settlements, and withholding tax obligations

Goods and Services Tax Act: Governs GST treatment of intercompany transactions and related documentation requirements

MAS Regulations: Monetary Authority of Singapore regulations concerning financial services and cross-border payment considerations

Transfer Pricing Guidelines: Guidelines on arm's length principle, documentation requirements, and related party transaction rules

Limitation Act (Cap. 163): Establishes time limits for claims and prescription periods

Evidence Act (Cap. 97): Sets requirements for documentary evidence and electronic records

Electronic Transactions Act: Governs electronic execution and validity of electronic transactions

Personal Data Protection Act: Regulates the collection, use, and disclosure of personal data in Singapore

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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