Intercompany Management Fees Agreement Template for Denmark

The Intercompany Management Fees Agreement is essential for corporate groups operating in Denmark where one entity provides management services to related entities. This document is typically used when establishing formal arrangements for shared management services, ensuring compliance with Danish transfer pricing regulations and tax laws. It details the scope of services, calculation methodologies for fees, and documentation requirements. The agreement is particularly important given Danish authorities' scrutiny of related-party transactions and the need for arm's length pricing. It helps demonstrate compliance with Danish Tax Assessment Act requirements and provides clarity on VAT treatment of management services. The document should be reviewed regularly to ensure continued alignment with changing regulatory requirements and business needs.

1. Parties: Identification of the service provider and recipient companies

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of management services to be provided

5. Service Provider's Obligations: Key responsibilities and commitments of the service provider

6. Service Recipient's Obligations: Key responsibilities and commitments of the service recipient

7. Fees and Payment Terms: Management fee calculation methodology, invoicing, and payment terms

8. Transfer Pricing Compliance: Confirmation of arm's length principles and documentation requirements

9. VAT and Taxation: VAT treatment and tax-related obligations

10. Performance Standards: Service levels and quality standards

11. Intellectual Property: Ownership and usage rights of IP in relation to services

12. Confidentiality: Protection of confidential information

13. Term and Termination: Duration of agreement and termination provisions

14. General Provisions: Standard boilerplate clauses including governing law, notices, etc.