Document background
The Intercompany Loan Agreement is a crucial document for facilitating financial transactions between related entities within a corporate group under Danish law. It is typically used when one group company provides financing to another, whether for operational needs, expansion projects, or restructuring purposes. The agreement must comply with Danish corporate law, tax regulations, and transfer pricing rules, particularly regarding arm's length terms and documentation requirements. This document includes essential provisions covering loan terms, interest rates, repayment schedules, and default scenarios, while also addressing specific Danish regulatory requirements such as thin capitalization rules and transfer pricing documentation. It serves as both a legal framework for the loan and evidence of compliance with relevant Danish corporate and tax regulations.
