Intercompany loan

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Intercompany loan

Loan made by one unit of a corporation to another unit of the same corporation.

Intercompany Loan

A loan in which both the lender and the borrower are divisions of the same corporation. Such a loan may have tax consequences, depending on the jurisdiction.
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References in periodicals archive ?
They also demanded that it should lower down interest rate on inter-company loans.
This was evident from the increase in inter-company loans from the parent group during the period of high financial leverage in 2014, in addition to the THB54 billion in standby credit facilities and the THB12 billion revolving loan facility from the parent group.
The growth in direct investment net inflow was attributed to inter-company loans and trade credits related transactions of the non-oil sector.
Tavistock is obliged to utilise GBP 52,000 of this consideration for the acquisition of IFAC and the balance of GBP 448,000 to repay outstanding inter-company loans owed by IFAC.
However there remains a deficit of more than PS61m, comprising PS55m of inter-company loans and a PS1.
By invoking a 1969 tax law, Obama could bypass congressional gridlock and restrict foreign tax-domiciled US companies from using inter-company loans and interest deductions to cut their US tax bills, said Stephen Shay, former deputy assistant Treasury secretary for international tax affairs in the Obama administration.
Out of its $10 billion total debt, $6 billion is owed to banks and the remaining $4 billion is classed as inter-company loans.
The decline is mainly due to the faster repayment rate of inter-company loans by local subsidiaries to parent companies abroad.
Inter-company loans related to foreign direct investment are said to be permanent debt having a special position between global equity and debt.
Of Dubai Group's US$10bn total debt, US$6bn is owed to banks and the remaining $4bn is classed as inter-company loans.
Of Dubai Group's $10 billion total debt, $6 billion is owed to banks and the remaining $4 billion is classed as inter-company loans.
Of the $10 billion total debt, $6 billion is owed to banks and the remaining $4 billion is classed as inter-company loans.

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