Copying and distributing are prohibited without permission of the publisher

Changes to German transfer pricing regulations affect PEs

01 May 2012

The German Ministry of Finance published a draft Bill of the Annual Tax Act for 2013. The publication, dated March 5 2012, will implement several EU as well as OECD regulations into the German Tax Law. Oliver Wehnert and Ivo Tankov of Ernst & Young explain what these changes mean for taxpayers and their transfer pricing operations.

The German Ministry of Finance's (GMF) proposed changes present a number of implications for taxpayers. They specifically focus on: implementing EU directives, which allow for greater cooperation between tax administrations operating in different jurisdictions; introducing changes to transfer pricing legislation, which will now be more in line with the 2010 OECD Model Tax Convention (MTC) as well as the 2010 Report on the Attribution of Profits to Permanent Establishments (the Report); and amending the VAT Act so that it now includes new regulations on the location of services being rendered as well as the new requirements for official invoices.

Underlying OECD concepts utilised in the draft legislature Authorised OECD approach in terms of Article 7 of the MTC and the Report The proposed Annual Tax Act has introduced some specific amendments to Article 1 Foreign Tax Act (FTA), which, among other topics, also covers permanent establishments (PE). The amendments proposed...



This article is locked content, available to current subscribers or trialists.

  • Current subscribers or trialists - Please log in to view this article in full.
  • New users - Please take a free 7 day trial.
  • Expired subscribers or trialists - Please subscribe to gain immediate full access.

If you think you've received this message in error, please contact your account manager, Nick Burroughs:
Email: nburroughs@euromoneyplc.com, Tel: +44 (0)207 779 8379

Subscribe now

Subscribe today to gain full access to International Tax Review.

Subscribe

Free trial

Take a free trial now and gain 7 days of full access to International Tax Review.

Free trial





International Tax Review Profile

.@DeloitteTax Congratulations on all your nominations for #Americastaxawards2015 Find out if your firm has got the nod here...

Aug 4 2015 11:51 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Don't miss this #free #BEPS #infographic from @TPWeek http://t.co/Z3iVgYhRtO

Aug 4 2015 10:14 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @garrigues_es: Shortlisted in the @IntlTaxReview Americas Tax Awards:‘Tax Firm in Colombia’ and ‘International Firm in the Americas’ htt…

Aug 3 2015 04:29 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @gowlings: The @IntlTaxReview Americas Tax Awards shortlist is out, & we're up for Canada's Transfer Pricing Firm of the Year! http://t.…

Aug 3 2015 09:45 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @WeilGotshal: Proud to have 7 nominations on @IntlTaxReview Americas Tax Review shortlist highlighting both our Firm and our deals! http…

Aug 3 2015 09:45 ·  reply ·  retweet ·  favourite
International Correspondents

After the Irish budget, what would make you more likely to put more substance into Ireland?