Document background
An Inter Company Loan Agreement is essential for documenting financial arrangements between affiliated companies operating in the Philippines. This document is typically used when one company within a corporate group provides financing to another related company, whether for working capital, expansion, or other business purposes. The agreement must comply with Philippine regulations, including the Corporation Code, tax laws, and central bank guidelines. It should detail the loan terms, interest rates, repayment schedule, and any security arrangements while addressing specific requirements for related party transactions under Philippine law. The document becomes particularly important for audit purposes, tax compliance, and corporate governance, especially given the scrutiny that related party transactions receive from regulatory authorities in the Philippines.
