Intercompany management charge

A parent or service company may charge for genuine functions such as administration, systems or coordination. Identify the services, beneficiary, allocation basis, agreement and evidence rather than treating any remittance as a management charge. Cross-border charges can have transfer-pricing, deductibility, withholding, currency and remittance consequences under the applicable rules. The charge is separate from the CEO’s salary and from a dividend. Internal income and expense normally eliminate in group analysis, while genuine tax, cash-timing and external costs may remain relevant; an accounting label does not override legal transfer restrictions.