Signed copies of all agreements are stored in a central repository and searchable, making it easy to conclude agreements for documentary purposes. While IT has an excellent process, many multinationals (NCCs) need to define a more precise process and fill in the gaps. Since all new requirements are imposed on IMC in a short period of time, it is important that they spend time assessing and preparing. With regard to intercompany agreements, existing agreements should be reviewed and ensured that they are in line with the most current economic analyses and transfer pricing policies. It also means ensuring that agreements are archived in an easily accessible location. Finally, an organization will want to develop processes for the development of new agreements and the annual review of existing agreements. To find out more, tax.thomsonreuters.com/onesource/intercompany-agreements/ To successfully address transfer pricing issues, the arm`s length principle (FLA), which remains the globally accepted transfer pricing paradigm, needs to be adopted by MNS as a guide star for pricing business-to-business transactions. Under the ALP, MNEs are required to use prices that, in similar circumstances, would be agreed between independent third parties. It is therefore not surprising that the issue of “comparability” in transfer pricing is crucial. In order to minimize the challenges of global tax authorities, the ONESOURCE Transfer SOFTWARE helps You to effectively centralize and manage intercompanyation agreements so that they can be properly generated, updated and analyzed.
Optimize the design and execution of transfer pricing agreements by a central repository with contract management and electronic signature functions. As part of this six-step process, tax authorities may find that the business and financial relationships are broader than the “four corners” of the legal document signed by the parties. However, where a transaction has been formalized by parties bound by written contractual agreements, those agreements not only provide the starting point for the delineation of the transaction between them, but also indicate how the parties intended to allocate the responsibilities, risks and expected results resulting from their interaction at the time of conclusion of the contract. . . .