Document background
A Simple Intercompany Loan Agreement is commonly used when one entity within a corporate group provides financial support to another group entity. This document is particularly relevant for multinational corporations with Dutch subsidiaries or Dutch parent companies seeking to implement efficient cash management and internal financing structures. The agreement covers fundamental aspects such as loan amount, interest rates (which must comply with Dutch transfer pricing regulations), repayment terms, and basic covenants. It is designed to be straightforward while ensuring compliance with Dutch legal requirements, including the Dutch Civil Code and relevant tax regulations. The document is simpler than external financing agreements but still maintains necessary formalities for proper intercompany documentation and tax compliance. It's especially useful for regular business operations, group restructuring, or project financing between related entities.
