Intercompany Cost Plus Agreement Template for Switzerland

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Key Requirements PROMPT example:

Intercompany Cost Plus Agreement

"I need an Intercompany Cost Plus Agreement for our Swiss shared services center providing IT and administrative support to group companies, with a 5% markup on costs, to be effective from January 1, 2025."

Document background
The Intercompany Cost Plus Agreement is essential for multinational companies operating in Switzerland that provide services between group entities. It is particularly relevant when one entity provides administrative, technical, or management services to related entities and requires a compliant transfer pricing structure. The agreement meets Swiss legal and tax requirements while adhering to OECD transfer pricing guidelines. It typically includes detailed cost base definitions, markup calculations, and documentation requirements necessary for tax compliance. This type of agreement is commonly used in shared service center arrangements, regional headquarters operations, or when centralizing specific functions within a corporate group in Switzerland.
Suggested Sections

1. Parties: Identification of the service provider and service recipient entities, including full legal names and registration details

2. Background: Context of the agreement, relationship between the parties, and general purpose of the cost plus arrangement

3. Definitions: Key terms used throughout the agreement, including 'Cost Base', 'Markup', 'Services', 'Transfer Pricing' and other relevant definitions

4. Scope of Services: Detailed description of services to be provided by the service provider to the service recipient

5. Cost Base Determination: Definition and calculation methodology of the cost base, including direct and indirect costs

6. Markup Calculation: Specification of the agreed markup percentage and its calculation methodology

7. Pricing and Payment Terms: Details of how final prices are calculated, invoicing frequency, and payment terms

8. Documentation Requirements: Requirements for maintaining proper documentation for transfer pricing and tax compliance

9. Reporting and Review: Periodic reporting requirements and review processes for costs and markup

10. Term and Termination: Duration of the agreement and conditions for termination

11. General Provisions: Standard contractual clauses including governing law, jurisdiction, amendments, and notices

Optional Sections

1. Service Levels: Include when specific performance metrics need to be established for the services

2. Intellectual Property: Include when services involve creation or use of intellectual property

3. Staff and Resources: Include when specific requirements exist for personnel providing services

4. Audit Rights: Include when additional audit rights beyond standard documentation requirements are needed

5. Confidentiality: Include as separate section when extensive confidentiality provisions are required

6. Force Majeure: Include when specific force majeure provisions are needed beyond standard terms

7. Compliance with Laws: Include when specific regulatory compliance requirements need to be addressed

Suggested Schedules

1. Schedule A - Service Description: Detailed description of all services covered under the agreement

2. Schedule B - Cost Components: Detailed list and description of all cost elements included in the cost base

3. Schedule C - Markup Calculation Methodology: Detailed methodology for calculating the markup, including benchmarking analysis

4. Schedule D - Service Levels: Specific service levels and performance indicators if applicable

5. Schedule E - Reporting Templates: Templates for regular cost and service reporting

6. Appendix 1 - Transfer Pricing Documentation: Required documentation format and content for transfer pricing compliance

7. Appendix 2 - Contact Details: Key contacts for both parties for various aspects of the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Manufacturing

Pharmaceutical

Technology

Consumer Goods

Professional Services

Industrial

Energy

Telecommunications

Healthcare

Chemical

Automotive

Relevant Teams

Legal

Finance

Tax

Compliance

Treasury

Accounting

Shared Services

Operations

Risk Management

Corporate Development

Relevant Roles

Chief Financial Officer

Head of Tax

Transfer Pricing Manager

Legal Counsel

Financial Controller

Head of Compliance

Tax Director

Group Controller

Finance Manager

Corporate Counsel

Head of Shared Services

Operations Director

Treasury Manager

Accounting Manager

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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