The German Federal Minister of Finance has published a draft law, implementing the EU anti-tax avoidance directive. However, the legislation is very far-reaching! Although the provisions are still draft, there are 2020 effective dates.
Highlights
- Eliminates current TP hierarchy for methods
- Looks at conduct, vs. contracts
- Codifies function and risk analysis
- Best method rule
- Legal definition of “intangibles”
- DEMPE implementation
- Intangible price-adjustment clause
- Addresses transfer of functions valuation
- Deductibility of German interest expense
- Expands related party definition
- Reduces turnover amount to prepare a TP Master File
- Codifies APA processes
Deloitte’s TP Alert provides additional details:
Click to access dttl-tax-global-transfer-pricing-alert-19-037-20-december-2019.pdf
Strategizing Multinational Tax Risks 
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