Document background
The Intercompany Recharge Agreement is essential for corporate groups operating in Switzerland that need to formalize internal cost and service allocations between related entities. This document is typically used when one group entity provides services or incurs costs that benefit other group members, requiring a formal mechanism for fair and compliant cost allocation. The agreement ensures compliance with Swiss transfer pricing regulations, VAT requirements, and corporate law while providing clear documentation for tax authorities. It is particularly important in the context of Swiss tax and regulatory requirements, which emphasize the need for arm's length pricing and proper documentation of intercompany transactions. The agreement should be updated periodically to reflect changes in service scope, cost structures, or regulatory requirements.
