抖阴短视频

Intercompany Cost Sharing Agreement Template for Philippines

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Key Requirements PROMPT example:

Intercompany Cost Sharing Agreement

"I need an Intercompany Cost Sharing Agreement for my Philippine technology company to share IT infrastructure costs with three subsidiary companies, including provisions for quarterly true-up adjustments and specific allocation based on user headcount."

Document background
The Intercompany Cost Sharing Agreement is essential for Philippine corporate groups seeking to establish a formal framework for sharing costs among related entities. This document becomes necessary when multiple companies within a group share resources, services, or facilities and need to allocate the associated costs fairly and in compliance with local regulations. It addresses key requirements under Philippine tax law, particularly transfer pricing rules under Revenue Regulations No. 2-2013, and provides a structured approach to cost allocation that satisfies both operational needs and regulatory scrutiny. The agreement is particularly relevant in the context of shared service arrangements, group-wide initiatives, or when companies within a group collaborate on projects or share common resources. It helps demonstrate to tax authorities that intercompany charges are at arm's length and properly documented.
Suggested Sections

1. Parties: Identification of the participating companies, including their complete legal names, registration numbers, and registered addresses

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

3. Definitions: Key terms used throughout the agreement, including 'Shared Costs', 'Cost Pool', 'Allocation Keys', 'Participating Parties', etc.

4. Scope of Cost Sharing: Detailed description of activities, services, or projects covered under the cost sharing arrangement

5. Cost Pool and Eligible Costs: Definition of costs to be shared and criteria for inclusion in the cost pool

6. Allocation Methodology: Detailed explanation of how costs will be allocated among participating parties, including allocation keys and calculations

7. Billing and Payment Terms: Procedures for billing, payment timing, currency, and payment methods

8. True-up Mechanisms: Procedures for periodic reconciliation and adjustment of estimated vs. actual costs

9. Documentation Requirements: Record-keeping obligations and supporting documentation requirements

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Dispute Resolution: Procedures for resolving disagreements between parties

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

Optional Sections

1. Intellectual Property Rights: Required when the cost sharing involves development of IP or use of existing IP

2. Tax Compliance: Specific section addressing transfer pricing compliance when agreement involves international parties

3. Entry and Exit Provisions: Required when agreement needs to accommodate potential new participants or exit of existing ones

4. Confidentiality: Detailed confidentiality provisions when sensitive information is shared

5. Force Majeure: Required when parties want specific provisions for handling unforeseen circumstances

6. Limitation of Liability: Optional provisions limiting parties' liability in specific circumstances

7. Insurance Requirements: Required when shared activities involve significant operational risks

Suggested Schedules

1. Schedule A - Participating Parties: List of all participating entities with their details and participation percentages

2. Schedule B - Eligible Costs: Detailed listing of costs that qualify for sharing under the agreement

3. Schedule C - Allocation Keys: Detailed methodology and formulas for cost allocation, including examples

4. Schedule D - Service Level Requirements: If applicable, specific service levels or performance metrics related to shared services

5. Schedule E - Billing and Reporting Templates: Standardized formats for cost reporting and billing

6. Appendix 1 - Transfer Pricing Documentation: Required documentation to support arm's length nature of arrangements

7. Appendix 2 - Governance Procedures: Detailed procedures for oversight and management of the cost sharing arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses
























Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Healthcare

Retail

Energy

Telecommunications

Consumer Goods

Logistics

Real Estate

Shared Services

Relevant Teams

Legal

Finance

Tax

Treasury

Compliance

Corporate Governance

Shared Services

Operations

Risk Management

Internal Audit

Corporate Planning

Relevant Roles

Chief Financial Officer

Finance Director

Tax Director

Legal Counsel

Corporate Lawyer

Transfer Pricing Manager

Group Controller

Financial Controller

Compliance Officer

Treasury Manager

Shared Services Director

Operations Director

Risk Manager

Corporate Secretary

Chief Legal Officer

Industries







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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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