Document background
The Intercompany Recharge Agreement is essential for Malaysian companies operating within a group structure where services, costs, or resources are shared between related entities. This document is particularly important in the Malaysian context due to strict transfer pricing regulations and corporate governance requirements. It provides a formal framework for documenting and implementing cost allocations, service charges, and shared resource arrangements between group companies. The agreement ensures compliance with Malaysian tax laws, particularly the Income Tax Act 1967 and Transfer Pricing Guidelines, while establishing clear operational procedures for intercompany transactions. Companies typically implement this agreement when setting up shared service arrangements, allocating group costs, or establishing service provision between related entities.
