Transfer Pricing

Intercompany Service Fee Arrangements

Intercompany Service Fee Arrangements

NERA has developed a robust documentation framework for intercompany services that has been used successfully worldwide. This framework consists of a structured approach to valuing arm’s length service fees.

NERA's approach to documenting intercompany services begins with a thorough understanding of the functions and costs associated with the clients' relevant business units.

  • After performing a robust gathering of facts, we group costs into distinct service categories.
  • We independently review each service category to determine which costs are related to stewardship activities, routine activities, and non-routine services.
  • Service costs are then allocated to determine what portion of costs in each category is chargeable to affiliates. 
  • Arm's length fees for non-routine services are calculated rigorously through an economic benchmarking process that is expansive and comprehensive.
  • Finally, we integrate various elements of the structured approach to calculate total service fee charges for related parties.

NERA's structured approach to documenting intercompany service charges leads to increased defensibility under audit because all service fee charges can be traced back to their original source data.

  • We use routine accounting data that is created and maintained during the ordinary course of business, enabling our clients to easily update and maintain this framework in-house.
  • We rely upon information that is in the public domain and only employ analytical tests that are verifiable within the delivered documentation to provide our clients with work that has lasting value.
Name Title Location Phone Email
Dr. Yves Hervé Managing Director Frankfurt +49 69 710 447 508 yves.herve@nera.com
Dr. Harlow Higinbotham Managing Director Chicago +1 312 573 2803
+86 21 6103 5544
+86 10 6533 4395
harlow.higinbotham@nera.com
Dr. Emmanuel Llinares Managing Director
Head of Global Transfer Pricing
Paris
Geneva
London
+33 1 70 75 01 93
+41 22 819 94 94
+44 20 7659 8650
emmanuel.llinares@nera.com
Philip de Homont Director Frankfurt +49 69 710 447 502 philip.de.homont@nera.com
Dr. Niraja Srinivasan Director Washington, DC +1 202 466 9290 niraja.srinivasan@nera.com
Dr. Vladimir Starkov Director Chicago +1 312 573 2806 vladimir.starkov@nera.com
Nihan Mert-Beydilli Associate Director Los Angeles +1 213 346 3035 nihan.mert.beydilli@nera.com
Yuko Saito Associate Director New York City
Tokyo
+1 212 345 1963
+81 3 3500 3378
yuko.saito@nera.com
Tom Braukmann Principal Frankfurt +49 69 710 447 511 tom.braukmann@nera.com
Title Type Author
Transfer Pricing Solutions for Intragroup Shared Services White Paper Dr. Niraja Srinivasan and Nihan Mert-Beydilli
‘Coca-Cola’ vs. Section 482: Is It Time to Refresh the Regulatory Guidance? Published Article Dr. Harlow Higinbotham and Dr. Niraja Srinivasan
The Future of Transfer Pricing Published Article Niraja Srinivasan, et al.
Entretien de Juliette Ansart dans Dauphinews Published Article by Juliette Ansart
Going digital multinationals: Navigating economic and social imperatives in a post-pa... Published Article Niraja Srinivasan, et al.
NERA Experts Contribute Chapter to "The Future of the Profit Split Method" Book Dr. Harlow Higginbotham and Dr. Vladimir Starkov
Transfer Pricing Roundtable in Financier Worldwide. Expert QA Dr. Vladimir Starkov and Philip de Homont
Amount B: Facts and Circumstances Matter—Even for Routine Distributors Published Article Dr. Harlow Higinbotham, Dr. Niraja Srinivasan, Dr. Vladimir Starkov, and Nihan Mert-Beydilli
Dr. Yves Hervé’s Interview in Financier Worldwide Dr. Yves Hervé
Taxation of the Digital Economy: Analysing User Base Value Published Article Dr. Yves Hervé and Philip de Homont