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A Intercompany Agreement sets out the terms and rules for business dealings between related companies within the same corporate group. These legally binding contracts spell out how different parts of a business family handle transactions, share resources, and split profits - crucial for meeting Australian tax requirements and corporate governance standards.

Beyond satisfying the ATO's transfer pricing rules, these agreements protect each company's interests and create clear accountability. They cover everything from management fees and intellectual property rights to service charges and cost-sharing arrangements. For Australian businesses with multiple entities or overseas operations, having solid intercompany agreements helps avoid tax disputes and keeps operations running smoothly.

Put an Intercompany Agreement in place when your business operates through multiple related companies or subsidiaries. This becomes essential before starting regular transactions between your entities, like sharing staff, transferring assets, or providing management services. The ATO pays close attention to these arrangements, especially for transfer pricing compliance.

Create these agreements early in your corporate structuring process, particularly when expanding operations, setting up new subsidiaries, or engaging in cross-border activities within your group. Having clear terms documented upfront helps avoid tax complications, protects each entity's interests, and makes financial reporting much smoother. It's much easier to establish these rules before complex transactions begin.

• Master Intercompany Agreement: Provides an overarching framework for all related-party dealings within a corporate group
• Inter Company Services Agreement: Focuses specifically on service arrangements between entities, like shared IT or HR support
• Intercompany Cost Sharing Agreement: Details how group expenses and development costs are allocated between entities
• Intercompany Lease Agreement: Governs property or equipment leasing between related companies
• Intercompany Agreement Between Parent And Subsidiary: Establishes specific terms for parent-subsidiary relationships and obligations

• Corporate Legal Teams: Draft and review Intercompany Agreements to ensure compliance with Australian corporate law and ATO requirements
• Company Directors: Sign and oversee these agreements as part of their governance responsibilities
• CFOs and Finance Teams: Implement the financial terms and monitor transfer pricing compliance
• Tax Advisors: Guide structure and terms to meet ATO transfer pricing rules and optimize tax positions
• Subsidiary Managers: Execute day-to-day operations according to agreement terms
• External Auditors: Review these agreements during annual audits to verify proper related-party transactions

• Entity Details: Gather full legal names, ACNs, and registered addresses of all participating companies
• Transaction Scope: List all services, assets, or resources to be shared between entities
• Pricing Structure: Document how costs and charges will be calculated and justified for ATO compliance
• Service Terms: Define specific deliverables, performance standards, and operational requirements
• Financial Details: Outline payment terms, invoicing procedures, and currency arrangements
• Review Process: Our platform generates legally-sound Intercompany Agreements tailored to your needs
• Approval Chain: Identify authorized signatories and internal approval requirements

• Party Details: Full legal names, ACNs, and registered addresses of all participating entities
• Service Scope: Clear description of all services, goods, or resources being exchanged
• Pricing Terms: Detailed pricing methodology compliant with ATO transfer pricing rules
• Payment Terms: Invoice timing, payment methods, and currency specifications
• Duration & Termination: Agreement length, renewal options, and exit conditions
• Confidentiality: Data protection and information sharing protocols
• Dispute Resolution: Process for handling disagreements under Australian law
• Governing Law: Explicit statement of Australian jurisdiction and applicable regulations

An Intercompany Agreement differs significantly from a Consortium Agreement, though both involve multiple entities working together. Let's explore their key differences:

• Relationship Type: Intercompany Agreements govern transactions between related entities within the same corporate group, while Consortium Agreements connect independent companies collaborating on specific projects
• Tax Treatment: Intercompany Agreements must satisfy ATO transfer pricing rules and related-party transaction requirements, whereas Consortium Agreements focus on profit-sharing between independent entities
• Duration: Intercompany Agreements typically establish ongoing operational relationships, while Consortium Agreements usually cover specific projects or limited timeframes
• Control Structure: Intercompany Agreements reflect existing corporate hierarchies and control, but Consortium Agreements create new joint decision-making frameworks between independent parties
• Risk Allocation: Intercompany Agreements distribute risk within a corporate family, while Consortium Agreements share risk between separate organizations