Document background
The Intercompany Settlement Agreement is essential for corporate groups operating in Denmark who need to manage regular financial transactions between their affiliated entities. This document becomes necessary when multiple group entities engage in frequent cross-charges, service provisions, or other intercompany transactions that require systematic settlement. It ensures compliance with Danish transfer pricing regulations, tax laws, and corporate governance requirements while providing a clear framework for calculating, documenting, and settling intercompany balances. The agreement is particularly important in the context of Danish financial reporting requirements and tax transparency obligations, helping groups maintain consistent and compliant practices across their entities.
