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A Intercompany Agreement sets out the rules and terms when different parts of the same company group do business with each other. In Austria, these contracts help organizations manage internal transactions, pricing, and resource sharing while staying compliant with local corporate and tax laws.

These agreements play a vital role in Austrian business operations by documenting how affiliated companies handle everything from service fees to intellectual property rights. They're especially important for proving arm's length pricing to tax authorities and showing that internal dealings follow fair market conditions - key requirements under Austrian transfer pricing regulations.

You need an Intercompany Agreement when your Austrian company group starts sharing services, assets, or personnel between affiliated entities. This becomes essential for regular transactions like management services, IT support, or shared employee arrangements between parent companies and subsidiaries.

Put these agreements in place before starting significant inter-group activities, especially when dealing with intellectual property transfers or implementing cost-sharing arrangements. Austrian tax authorities expect clear documentation of transfer pricing methods, making these agreements crucial for multinational groups operating within Austria's borders. They're particularly important when establishing new subsidiaries or restructuring existing group relationships.

• Service Agreements: These cover shared administrative, IT, or management services between Austrian group companies, detailing service levels and costs
• Distribution Agreements: Used when one group company sells or distributes products for another, including pricing and territory rights
• IP Licensing Agreements: Handle intellectual property sharing within Austrian corporate groups, covering usage rights and royalties
• Cost Sharing Agreements: Outline how group companies split common expenses and allocate resources fairly
• Financial Service Agreements: Govern internal loans, cash pooling, and treasury services between Austrian group entities

• Corporate Legal Teams: Draft and review Intercompany Agreements to ensure compliance with Austrian corporate law and group policies
• Tax Advisors: Verify transfer pricing arrangements and ensure agreements meet Austrian tax requirements
• Company Directors: Sign and oversee implementation of agreements between affiliated entities
• Finance Departments: Monitor financial flows and ensure pricing structures align with agreement terms
• Compliance Officers: Maintain documentation and ensure ongoing adherence to agreement terms
• External Auditors: Review agreements during annual audits to verify proper inter-company transaction handling

• Company Details: Gather full legal names, registration numbers, and addresses of all participating group entities
• Transaction Scope: Define exact services, goods, or rights being exchanged between group companies
• Pricing Structure: Document market-based pricing methods that comply with Austrian transfer pricing rules
• Service Levels: Outline specific performance metrics, delivery timelines, and quality standards
• Financial Terms: Specify payment terms, currencies, and invoicing procedures
• Internal Approvals: Confirm signing authority and obtain necessary management endorsements
• Documentation: Compile supporting materials for pricing justification and service descriptions

• Party Identification: Complete legal names, registration numbers, and registered offices of all group entities
• Service Description: Detailed scope of services, goods, or rights being transferred between parties
• Pricing Terms: Clear methodology for calculating charges, aligned with Austrian arm's length principles
• Payment Provisions: Payment schedules, currency, and invoicing requirements
• Duration & Termination: Contract period, renewal terms, and termination conditions
• Confidentiality: Protection of sensitive group information and trade secrets
• Governing Law: Explicit reference to Austrian law and jurisdiction
• Dispute Resolution: Clear procedures for handling disagreements within the group

While Intercompany Agreements manage internal group transactions, a Business Acquisition Agreement handles the complete purchase of external businesses. These documents serve different purposes in Austrian corporate law and require distinct approaches.

• Transaction Nature: Intercompany Agreements regulate ongoing internal operations between affiliated entities, while Business Acquisition Agreements cover one-time external purchases
• Pricing Approach: Intercompany Agreements must demonstrate arm's length pricing for tax compliance, whereas Business Acquisition Agreements focus on market-based valuations
• Due Diligence: Business Acquisition Agreements require extensive third-party due diligence, while Intercompany Agreements rely more on internal documentation
• Risk Management: Business Acquisition Agreements need stronger warranties and indemnities since parties aren't related, unlike Intercompany Agreements where risks stay within the group