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An Intercompany Agreement sets the rules and terms for business dealings between different companies within the same corporate group. In Denmark, these agreements play a vital role in transfer pricing compliance and help companies meet the documentation requirements set by Danish tax authorities (SKAT).

These agreements spell out important details like pricing methods, payment terms, and service levels between related entities. They protect companies from tax disputes, ensure fair market values for transactions, and help Danish businesses comply with both local and EU regulations. Most Danish multinationals use them to manage everything from shared services to intellectual property rights between their subsidiaries.

Put an Intercompany Agreement in place when your Danish company starts sharing services, assets, or personnel with affiliated companies. This becomes crucial when subsidiaries begin trading with each other, providing management services, or sharing intellectual property - especially if these transactions cross borders.

Danish tax authorities require clear documentation of related-party transactions, making these agreements essential for companies with multiple entities. They're particularly important when launching new joint ventures, restructuring corporate groups, or setting up shared service centers. Getting the agreement ready before these activities start helps avoid tax complications and ensures smooth operations between group companies.

• Intercompany Administrative Services Agreement: Governs shared corporate functions like HR, IT, or accounting between group companies
• Intercompany Distribution Agreement: Manages product distribution arrangements between affiliated companies
• Inter Company Loan Agreement: Regulates internal financing and capital transfers within the group
• Intercompany Assignment Agreement: Handles transfer of assets, contracts, or IP rights between entities
• Intercompany Settlement Agreement: Resolves financial obligations and disputes between group companies

• Corporate Legal Teams: Draft and review Intercompany Agreements to ensure compliance with Danish transfer pricing rules and company law
• Board Members & Directors: Review and approve agreements as part of their corporate governance duties
• Tax Managers: Ensure agreements meet SKAT requirements and maintain proper documentation for audits
• Finance Departments: Handle pricing calculations and implement financial terms between group entities
• Subsidiary Management: Execute and operate under these agreements in daily business operations
• External Advisors: Provide specialized guidance on transfer pricing and cross-border compliance issues

• Company Details: Gather full legal names, registration numbers, and addresses of all group entities involved
• Service Scope: Document exact services, products, or resources being shared between entities
• Pricing Structure: Calculate and justify transfer prices following Danish arm's length principles
• Performance Metrics: Define clear service levels, delivery terms, and quality standards
• Legal Authority: Confirm signing authority and board approvals needed for each entity
• Documentation: Prepare supporting evidence for pricing methods and business rationale
• Template Selection: Use our platform's Danish-compliant templates to ensure all mandatory elements are included

• Party Details: Full legal names, registration numbers, and authorized representatives of all group entities
• Service Description: Detailed scope of services, deliverables, and performance standards
• Pricing Terms: Transfer pricing methodology, payment terms, and arm's length justification
• Duration & Termination: Contract period, renewal options, and termination conditions
• Compliance Clauses: Danish transfer pricing documentation requirements and GDPR obligations
• Liability & Risk: Risk allocation, indemnification, and insurance requirements
• Governing Law: Danish law application and jurisdiction specifications
• Signature Blocks: Proper execution format for Danish corporate entities

An Intercompany Agreement differs significantly from a Consortium Agreement in several key aspects, though both involve cooperation between multiple entities. While Intercompany Agreements govern relationships between companies within the same corporate group, Consortium Agreements establish partnerships between independent organizations.

• Pricing Requirements: Intercompany Agreements must follow strict transfer pricing rules and documentation under Danish tax law; Consortium Agreements typically use market-based pricing
• Control Structure: Intercompany Agreements assume common ownership and control; Consortium Agreements maintain separate entity independence
• Tax Implications: Intercompany transactions face heightened scrutiny from SKAT; Consortium dealings are treated as regular business transactions
• Duration and Flexibility: Intercompany Agreements often run indefinitely with regular reviews; Consortium Agreements usually have fixed terms tied to specific projects
• Risk Allocation: Intercompany Agreements distribute risk within the same group; Consortium Agreements share risk between independent parties