2020 and 2021 Transfer Pricing trends in Germany – Extensions in law and guidelines on mandatory documentation

July 7, 2021

Germany has adjusted its law and legislation following the 2017 OECD guidelines, special attention during the webinar will be given to: 

  • The required 100% synchronization of economic = legal = financial reality (the “magic triangle” approach)
  • Where to allocate “location benefits” & “other synergies”
  • How to link “price setting” versus the OECD approach to “price/profit checking”
  • Does the implementation in law tighten the exit tax on relocation of functions?
  • How does Germany perform a hypothetical arm’s length benchmark in the absence of “market comparables”?
  • What influence does the German tax authorities have on the taxpayer’s choice of method?
  • How does the required price adjustment clause wok in inter-company contracts?
  • What portion of profit’s allocated to the legal intangible owner is shared with the other economic owners (co-DEMPE partners)?
  • What is the new on the German APA regime – in law and in practice?  

After having published transfer pricing regulations in the past, Germany makes a big step forward on the operation of a legal base for enforcing these Transfer Pricing rules. The more “real time” TP documentation will put more pressure on the TP reports provided by multinationals.

See this as a refreshment of existing and quite some new rules and regulations which we expect the German tax authorities to accelerate their audit activities.  


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