All resources
Guide · Transactions · 8 min
Intercompany services
Scope the service, benefit evidence, cost pool, allocation key, markup and Local File support.
01
Establish that a service was received
Describe the activities performed, the recipient and the expected commercial or economic benefit. Separate services from shareholder activities and duplicated activities.
02
Build the charge
- Define the provider and recipient entities.
- Identify direct and indirect costs in the pool.
- Exclude shareholder, pass-through and unrelated costs where appropriate.
- Select allocation keys that reflect expected benefit.
- Support the markup and document any simplified approach used.
03
Evidence pack
Connect the agreement, service descriptions, cost schedules, allocation calculations, invoices and benefit evidence to the documented TP position.
Continue the review