Transfer Pricing Distribution Agreement

PartnerVine: So, if it`s a standard contractual structure, do the terms vary from one agreement to another? If you need price-compliant intercompany agreements for your controlled transactions, we have something for you… Once the first transfer pricing interviews (i.e. functional analysis interviews) have been conducted and the necessary data have been collected, it is time to describe the client`s business model. Some of the common business models used today by distribution and distribution organizations are: in the case of an intragroup distribution agreement, the cost of the delivered products may still be the main payment mechanism. As a general rule, however, there would be a price adjustment clause that would allow the distributor to make an appropriate fixed or minimal operating profit, consistent with the group`s transfer pricing compliance strategy. With regard to the content of the intercompany agreements, we highlight three key principles: a model distribution agreement is included in the suite of LCN Legal model interconnection agreements for transfer pricing compliance. Send us an email to for information on the pricing of bid agreements and their coverage. The tax authorities are not convinced that Pierre Plastic complies with transfer pricing laws. It intends to examine (i) whether the allocation of risks, assets and functions on which transfer pricing agreements were based is consistent with actual agreements and (ii) whether the associated companies have agreed to the transfer pricing agreements. Without intercompany agreements, Pjotr Plastic must now provide further evidence and convince the tax authorities that its transfer pricing position is in fact what it claims – potentially a lengthy and costly discussion. It could have been avoided… Joanna: This is an internal document to the group, because the concept of a limited risk allocation agreement is generally used only in the context of a group of companies.

The specific risk allocation and transfer pricing agreements provided for by this agreement are not suitable for a distribution agreement with an unrelated third party. Intercompany agreements can cover different controlled transactions. Here`s a common overview: Joanna: There are many variables that you should also take into account in a standard intragroup agreement.