In short, in this context, international practice recommends the evaluation of intragroup transactions. We must keep in mind the OECD`s diktat on transfer pricing. The value of intangible assets when managed by intragroup service contracts must also be documented. In the new scenario of recent developments in the industrial market and the increasingly frequent phenomena of cooperation and/or consolidation between companies that are very important, it is the problems related to contractual discipline that are adopted for the management of intragroup services. All of this has an impact both civilly and fiscally. In particular, I would like to focus, in this contribution, on the tax deductibility of intra-group services contracts. Within multinationals, it is increasingly common to enter into agreements in which certain activities are managed and coordinated by a single company (usually the holding company) in order to reduce the savings associated with the existence of similar functions in all entities of the group. These agreements may include, in particular, assistance and technical assistance; Mutual assistance activities in the legal, accounting and tax fields; Marketing activities to create a group image Providing research and development services. The contractual forms usually used to regulate intragroup service relationships differ in terms of the methods of determining compensation to be paid to the company in the group that provides the services.
In particular, the systems can be used as follows: the service agreement under which compensation is determined without correlation with the costs of the supplier company; the cost-sharing agreement, according to which compensation is based on the distribution of the costs borne by the subcontractor between all the companies in the group. This achieves a dual objective from a tax point of view. First of all, you will receive the correct deductibility of the costs incurred by the subsidiaries they bear. In addition, it is possible to avoid possible disputes concerning non-compliance with transfer pricing discipline in intragroup transactions. Another example is intragroup financing, which is used at heavier terms than market financing. All of this is the source of the parent company`s promotion letters and the recipient company`s inability to access the bank loan.