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A Intercompany Agreement sets out the terms and rules for business dealings between related companies within the same corporate group. In Singapore, these agreements play a crucial role in transfer pricing compliance and help organizations meet the requirements of the Income Tax Act and IRAS guidelines.

These agreements spell out key details like pricing methods, payment terms, and service levels between affiliated entities. They protect companies by creating clear audit trails, supporting arm's length pricing, and helping defend against tax scrutiny. For multinational groups operating in Singapore, having solid intercompany agreements is especially important given the country's strict transfer pricing regulations.

Put Intercompany Agreements in place before starting any significant business activities between your related companies in Singapore. This is especially important when sharing services, transferring goods, or licensing intellectual property between group entities. IRAS expects to see these agreements during tax audits, particularly for transactions above SGD 15 million annually.

Create these agreements when establishing new subsidiaries, restructuring operations, or launching shared service centers. Having clear documentation from the start helps demonstrate arm's length pricing, supports GST compliance, and protects your company during regulatory reviews. Singapore's strict transfer pricing rules make it risky to operate without proper intercompany documentation.

• Intercompany Administrative Services Agreement: Governs shared corporate functions like HR, IT, or accounting between group companies
• Intercompany Assignment Agreement: Handles the transfer of rights, contracts, or intellectual property between related entities
• Intercompany Revolving Loan Agreement: Establishes flexible borrowing arrangements between group companies
• Inter Company Loan Agreement: Covers fixed-term lending between related companies
• Intercompany Asset Transfer Agreement: Manages the sale or transfer of physical assets within a group

• Corporate Legal Teams: Draft and review Intercompany Agreements to ensure compliance with Singapore's transfer pricing rules and corporate regulations
• Company Directors: Sign and approve these agreements as authorized representatives of their respective group entities
• Finance Managers: Implement pricing structures and payment terms outlined in the agreements, maintaining proper documentation
• Tax Advisors: Review agreements to ensure they meet IRAS requirements and support defendable transfer pricing positions
• Compliance Officers: Monitor ongoing adherence to agreement terms and maintain records for regulatory reporting
• External Auditors: Examine these agreements during annual audits to verify arm's length transactions

• Company Details: Gather full legal names, registration numbers, and addresses of all related entities involved
• Transaction Scope: Document the exact services, goods, or rights being transferred between companies
• Pricing Method: Determine and justify your transfer pricing approach following IRAS guidelines
• Financial Terms: Specify payment schedules, currencies, and invoicing requirements
• Performance Metrics: Define clear service levels, quality standards, and delivery expectations
• Authority Check: Confirm signing authority and board approvals needed for each entity
• Documentation: Use our platform to generate a compliant agreement that includes all required elements

• Party Details: Full legal names, registration numbers, and registered addresses of all group entities
• Service Description: Detailed scope of goods, services, or rights being transferred between parties
• Pricing Terms: Clear pricing methodology, payment schedules, and invoicing requirements that meet IRAS guidelines
• Duration & Termination: Agreement period, renewal terms, and conditions for early termination
• Performance Standards: Specific service levels, quality metrics, and delivery requirements
• Compliance Provisions: References to Singapore transfer pricing regulations and reporting obligations
• Governing Law: Explicit statement choosing Singapore law and jurisdiction
• Execution Block: Proper signature sections for authorized representatives of each entity

A key document often confused with an Intercompany Agreement is the Business Acquisition Agreement. While both deal with corporate transactions, they serve distinctly different purposes in Singapore's business landscape.

• Party Relationship: Intercompany Agreements govern ongoing transactions between related entities within the same group, while Business Acquisition Agreements handle one-time purchases between independent companies
• Regulatory Focus: Intercompany Agreements primarily address transfer pricing and tax compliance, whereas Business Acquisition Agreements focus on ownership transfer and warranties
• Duration: Intercompany Agreements typically establish long-term operational frameworks, but Business Acquisition Agreements conclude once the sale completes
• Pricing Approach: Intercompany Agreements must demonstrate arm's length pricing for tax purposes, while Business Acquisition Agreements reflect market-negotiated values