Strategizing International Tax Best Practices – by Keith Brockman

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:

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-global-transfer-pricing-alert-19-037-20-december-2019.pdf

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: