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

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 work 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 TP 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.

Speakers:

• Steef Huibregtse, CEO at TPA Global
• Carsten Schmid, TPA Global Member