Management fees
Fees charged by a holding company to its subsidiaries for real services rendered: general management, accounting, legal, marketing, IT. The charges must correspond to services actually delivered and be priced at market rates.
In practice
Management fees allow the holding to fund its own overheads without depending solely on dividends. Tax authorities require a detailed service agreement, regular invoicing and a clear audit trail of services performed. A fee rate above 5-8% of the subsidiary’s revenue without solid documentation is a red flag during a tax audit. Compliance is built progressively over successive financial years.