Dear Experts,
We are having a requirement where we have 3 headquarters (e.g Singapore, Netherlands, US) in 3 different regions. These headquarters have intercompany loans transactions with the subsidiary company in their respective region. This can be handled in IHB by creating the headquarters as Inhouse cash centers for the respective region.
But there are also some subsidiary which provide intercompany loans to other subsidiaries (e.g. Germany providing loans to Russia) without the involvement of headquarters. These loans have their own separate interest rates and withholding tax depending on the countries involved in the transaction.
Request to please help with the below questions
1. Whether such intercompany loans between the subsidiary can be handled in IHC ? As in IHC, the borrowing or lending has to be with the IHC center.
2. Would it be required to create multiple IHC centers for each subsidiary involved in these transactions?
Appreciate your response for clarifying above doubts.