Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘German TP’

German draft TP legislation!

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

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