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Intercompany Agreement Transfer Pricing Template for United Arab Emirates

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Key Requirements PROMPT example:

Intercompany Agreement Transfer Pricing

"I need an Intercompany Agreement Transfer Pricing document for a UAE-based technology parent company providing management and IT services to its manufacturing subsidiary in Saudi Arabia, with implementation required by January 2025 to align with new group tax structure."

Document background
The Intercompany Agreement Transfer Pricing document is essential for businesses operating in the UAE with related party transactions, particularly following the introduction of corporate tax and transfer pricing regulations in 2023. This agreement type has become crucial for compliance with UAE Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 101 of 2023, which mandate specific transfer pricing requirements. The document provides a comprehensive framework for establishing, documenting, and maintaining arm's length pricing arrangements between related entities. It includes essential elements such as pricing methodologies, documentation requirements, compliance obligations, and risk allocation mechanisms, all aligned with both UAE regulations and OECD guidelines. The agreement is particularly important for multinational enterprises needing to demonstrate compliance with local transfer pricing rules while maintaining consistency with global transfer pricing policies.
Suggested Sections

1. Parties: Identification of the related parties entering into the agreement, including registration details and tax residency information

2. Background: Context of the agreement, relationship between parties, and purpose of the intercompany transactions

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical transfer pricing terminology

4. Scope of Agreement: Details of the covered transactions, services, or goods being transferred between parties

5. Transfer Pricing Methodology: Specified method(s) for determining arm's length prices in accordance with UAE regulations and OECD guidelines

6. Pricing Terms and Conditions: Specific pricing arrangements, payment terms, and currency considerations

7. Documentation Requirements: Obligations regarding maintenance of transfer pricing documentation, including master file and local file requirements

8. Compliance Obligations: Responsibilities for maintaining compliance with UAE transfer pricing regulations and reporting requirements

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Representations and Warranties: Standard warranties regarding capacity, authority, and compliance with laws

11. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law provisions

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Force Majeure: Optional clause for circumstances beyond parties' control - include if significant external risks exist

2. Intellectual Property Rights: Include when transactions involve intellectual property or technology transfers

3. Confidentiality: Detailed confidentiality provisions - include when sensitive pricing or technical information is involved

4. Performance Reviews: Procedures for periodic review of pricing arrangements - include for long-term agreements

5. Cost Sharing Arrangements: Include when parties share development costs or common services

6. Working Capital Adjustments: Include when significant working capital impacts transfer pricing

7. Break Clause: Include when flexibility is needed for significant market changes or regulatory updates

Suggested Schedules

1. Schedule 1 - Covered Transactions: Detailed list and description of all intercompany transactions covered by the agreement

2. Schedule 2 - Pricing Methodology Details: Technical details of transfer pricing methods, including comparable data and adjustments

3. Schedule 3 - Documentation Requirements: Specific documentation requirements including templates and timing

4. Schedule 4 - Compliance Calendar: Timeline for various compliance obligations and reporting deadlines

5. Schedule 5 - Functional Analysis: Detailed analysis of functions performed, assets used, and risks assumed by each party

6. Appendix A - Sample Calculations: Examples of price calculations using the agreed methodology

7. Appendix B - Required Forms and Templates: Standard forms for documentation and reporting requirements

8. Appendix C - Contact Details: Key contacts for both parties for various aspects of the agreement

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

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Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Retail

Healthcare

Energy

Telecommunications

Real Estate

Construction

Automotive

Pharmaceuticals

Consumer Goods

Logistics

Media and Entertainment

Relevant Teams

Finance

Tax

Legal

Compliance

Treasury

Risk Management

Internal Audit

Corporate Finance

Financial Planning & Analysis

International Tax

Relevant Roles

Chief Financial Officer

Tax Director

Transfer Pricing Manager

International Tax Manager

Finance Director

Group Financial Controller

Tax Compliance Manager

Legal Counsel

Corporate Counsel

Finance Manager

Treasury Manager

Risk Management Officer

Compliance Officer

Financial Planning Manager

Group Accountant

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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