It is obvious that the ideal position is to conclude the corresponding Intercompany agreement in advance, as with any trade agreement. The options available depend on the terms proposed under the agreement and whether the rules can be said to be already in place. Regarding the content of intercompany agreements, we emphasize three fundamental principles: If you need transfer pricing intercompany agreements for your controlled transactions, we have something for you… In other cases, it may not be possible to say that the corresponding regulations were already in place, but it may nevertheless be desirable to achieve a “retrodated” effect. In this situation, it may now be possible to reach an agreement with a historical “effective date.” For example, a group may move from a property sales model (where local subsidiaries hold or acquire the legal personality of the products concerned and resell them to commercial risk customers) to an agency model (in which local subsidiaries act only as introductory intermediaries and without credit or other commercial risks when selling the products). The seller/order giver may agree with local distributors to process the agreements as they had been in force since the end of the previous year. This could involve the implementation of dated agency agreements if they are actually signed. In particular, the agreements could provide for the distribution of revenues and risks by reference to the historical date of entry into force, adjusting payments accordingly. This type of agreement would not bind third parties, but it can be effective from an accounting and fiscal point of view depending on the time elapsed since the historically forecast date. From the point of view of a group company in the United Kingdom proposing an Intercompany agreement, this agreement could well be important in the context of the company`s activities. The statutes of such a company generally provide that the company is managed by its directors, i.e. directors acting collectively by decision of the board of directors. In this case, it would be appropriate to consider the terms of the agreement at a board meeting, unless the board of directors has already delegated delegated authority to a single director or board of directors and the scope of the authority granted extends to this type of agreement.
One possible scenario is that the corresponding supply agreements are already operational, but they are simply not yet documented. For example, headquarters services may have been provided from a certain historical date, as reflected in the functional analysis. In this case, it may be possible, after the event, to create a document that recites what actually happened and records the main delivery conditions. The document must be dated, if it is actually signed, but may refer to the historic date of the transaction`s effectiveness. This approach may be more difficult to justify if the agreements are unusual or if a specific contractual risk profile is envisaged, which is not clearly demonstrated by the behaviour of the parties, such as limited risk allocation agreements.B. 6. Vertical consistency: If the agreement is part of a chain of deliveries of goods, services or licenses, check that the draft agreement is in line with what is happening in the chain above and below the agreement. These include, if necessary, the final provision of IP goods, services or licences to customers. Define the intercompany agreements of models currently used within the group and whether they need to be updated. Consider the intragroup deliveries that would benefit most from the intercompany agreements to support the group`s transfer pricing targets. Choose the appropriate contractual model (for example, global agreement.
B, bilateral agreements, hybrid, contractual plan/standard conditions). Discover clear account skills for creating and maintaining appropriate models, arranging signatures and archiving signed intercompany agreements.