Intercompany Cost Plus Agreement Template for Germany

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Intercompany Cost Plus Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Intercompany Cost Plus Agreement

"I need an Intercompany Cost Plus Agreement under German law for IT support services provided by our Munich-based parent company to its subsidiary in Hamburg, with a 5% mark-up rate and implementation date of March 1, 2025."

Document background
The Intercompany Cost Plus Agreement is essential for multinational corporate groups operating in Germany who need to establish compliant and efficient intercompany service arrangements. This document type is particularly relevant when one group entity provides services to another related entity and requires a structured approach to cost allocation and mark-up determination. The agreement ensures compliance with German transfer pricing regulations, tax laws, and documentation requirements while providing a clear framework for calculating service charges. It is commonly used for shared services, management services, technical support, and other intercompany arrangements where services are provided at cost plus an appropriate mark-up. The document includes comprehensive provisions for cost calculation methodologies, service scope definition, documentation requirements, and audit rights, all aligned with German legal requirements and international transfer pricing principles.
Suggested Sections

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

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

3. Definitions: Definitions of key terms including 'Costs', 'Mark-up', 'Services', 'Transfer Pricing', and other relevant terms

4. Scope of Services: Detailed description of services to be provided under the agreement

5. Cost Calculation: Methodology for calculating applicable costs, including direct and indirect cost components

6. Mark-up Determination: Specification of the agreed mark-up percentage and its calculation basis

7. Invoicing and Payment: Terms for invoicing, payment procedures, currency, and payment timelines

8. Documentation Requirements: Requirements for maintaining documentation to comply with German transfer pricing regulations

9. Audit Rights: Rights of parties to audit cost calculations and supporting documentation

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

11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

Optional Sections

1. Service Level Requirements: Specific service levels and performance metrics, used when detailed service standards need to be established

2. Intellectual Property Rights: Provisions regarding IP created or used during service provision, included when services involve intellectual property

3. Personnel: Terms regarding personnel providing services, included when specific staff requirements or restrictions apply

4. Confidentiality: Detailed confidentiality provisions, included when sensitive information is involved beyond standard business operations

5. Force Majeure: Provisions for unforeseen circumstances, included when specific risk allocation is needed

6. Transfer Pricing Adjustments: Mechanism for adjusting mark-up rates, included when periodic reviews and adjustments are anticipated

7. Subcontracting: Terms for subcontracting services, included when subcontracting is permitted

Suggested Schedules

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

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

3. Schedule 3 - Calculation Methodology: Detailed methodology for cost allocation and mark-up calculation

4. Schedule 4 - Documentation Requirements: Specific documentation requirements and templates for cost reporting

5. Schedule 5 - Key Personnel: List of key personnel involved in service delivery and their roles

6. Appendix A - Transfer Pricing Benchmark Study: Supporting transfer pricing analysis justifying the chosen mark-up rate

7. Appendix B - Service Level Metrics: Detailed performance metrics and measurement methods

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
Relevant Industries

Manufacturing

Technology

Financial Services

Pharmaceuticals

Automotive

Consumer Goods

Professional Services

Energy

Telecommunications

Chemical Industry

Logistics

Healthcare

Relevant Teams

Legal

Finance

Tax

Compliance

Treasury

Accounting

Operations

Shared Services

Internal Audit

Corporate Development

Risk Management

Relevant Roles

Chief Financial Officer

Tax Director

Transfer Pricing Manager

Legal Counsel

Finance Manager

Group Controller

Compliance Officer

Head of Shared Services

International Tax Manager

Corporate Finance Director

Operations Director

Financial Controller

Treasury Manager

Head of Accounting

Commercial Director

Industries
German Foreign Tax Act (Außensteuergesetz - AStG): Primary legislation governing transfer pricing in Germany, including requirements for intercompany pricing arrangements and documentation requirements
German Tax Code (Abgabenordnung - AO): Contains general tax provisions and documentation requirements for business transactions, including §90 which specifies documentation obligations for international business relationships
German Income Tax Act (Einkommensteuergesetz - EStG): Relevant for taxation of business income and transfer pricing adjustments, particularly §1 regarding international business relationships
German Administrative Principles for Transfer Pricing (Verwaltungsgrundsätze): Guidelines issued by German tax authorities on the application of transfer pricing rules, including specific guidance on cost-plus methods
EU Transfer Pricing Documentation (EU TPD): European Union guidelines for transfer pricing documentation that may affect German subsidiaries of EU companies
German Commercial Code (Handelsgesetzbuch - HGB): Contains requirements for commercial transactions and accounting principles that must be followed in intercompany agreements
German Limited Liability Companies Act (GmbH-Gesetz): Relevant if parties are GmbHs, particularly regarding management responsibilities and intercompany relationships
German Civil Code (Bürgerliches Gesetzbuch - BGB): Contains general contract law provisions that apply to all agreements, including basic principles of contract formation and performance
Price Documentation Regulation (Gewinnaufzeichnungsverordnung - GAufzV): Specifies requirements for documentation of transfer prices and cost calculation methods
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

Find the exact document you need

Intragroup Loan Agreement

German law-governed loan agreement between related group companies, establishing terms for intragroup financing in compliance with German legal requirements.

find out more

Intercompany Recharge Agreement

German law-governed agreement for regulating cost and service charges between affiliated companies, ensuring transfer pricing compliance and proper cost allocation.

find out more

Intercompany Administrative Services Agreement

German law-governed agreement for administrative service provision between affiliated companies, incorporating local regulatory compliance and transfer pricing requirements.

find out more

Master Intercompany Agreement

A German law-governed master agreement establishing the framework for all transactions and relationships between companies within the same corporate group.

find out more

Intercompany Agreement Between Parent And Subsidiary

German law-governed agreement establishing the legal and operational framework between a parent company and its subsidiary, ensuring compliance with German corporate and tax regulations.

find out more

Intercompany Shared Services Agreement

German law-governed agreement for structuring shared services arrangements between group companies, including regulatory compliance and operational framework.

find out more

Intercompany Credit Agreement

A German law-governed agreement establishing loan terms between related companies within the same corporate group.

find out more

Intercompany Lease Agreement

German law agreement regulating property lease arrangements between affiliated companies, incorporating both commercial lease and intercompany transaction requirements.

find out more

Intercompany Cost Plus Agreement

German law-governed agreement establishing cost-plus pricing arrangements for intercompany services between related entities, ensuring compliance with German transfer pricing regulations.

find out more

Intercompany Assignment Agreement

German law agreement governing the temporary assignment of an employee between group companies, ensuring compliance with local employment regulations and maintaining the original employment relationship.

find out more

Intercompany Cost Sharing Agreement

A German law-governed agreement establishing the framework for cost sharing between group companies, ensuring compliance with German corporate and tax regulations.

find out more

Intercompany Settlement Agreement

German law agreement governing financial settlements between group companies, including transfer pricing and tax compliance requirements.

find out more

Intercompany Asset Transfer Agreement

A German law agreement for transferring assets between related companies within the same corporate group, ensuring compliance with German corporate and tax regulations.

find out more

Intercompany Distribution Agreement

German law-governed agreement regulating product distribution arrangements between affiliated companies within the same corporate group, ensuring compliance with local and EU regulations.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.