Email: fra4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak German English, and Chinese.
skype: burlinna
TP-Q-10
Why kinds of scenarios will be adopted TP policy? What is the relevance between DTA and TP policy?
TP-A-10
When the Germany Tax entity would like to pay out whatever business profits, Royalty, Technical Services fees, Interests, trading amount, etc., it will adopt DTA tax rate. Its judge criteria, please see the Germany Treaty Page.
But if want to verify the above-mentioned amount if reasonable, will adopt the German TP Policy.
TP-Q-20:
在德國甚麼情況下, WFOE 外商投資企業不需要同時處理TP 申報和文件申報?
What are the scenarios in Germany, that a Wholly Foreign-Owned Entity (WFOE) is exempted from compliance of Transfer Pricing (TP) declaration and TP documentation?
TP-A-20:
A formal TP declaration and TP documentation is not required when the below: –
- Related party transactions value for goods and products <= EUR 6million per fiscal year; or
- Sum of all or other services <=EUR 600,000 per fiscal year.
*Documents such as contracts, information, and explanation relevant still need to be submitted to tax authorities upon request. However, there is less formal TP documentation to be prepared for inter-company transactions.
TP-Q-30:
在德國甚麼情況下, WFOE 外商投資企業需要向該國的稅務局發送TP 申報? 甚麼是申報單名稱?
What are the scenarios in Germany, that a Wholly Foreign-Owned Entity (WFOE) is required to submit a TP declaration to the country’s tax bureau? What is the name of the TP declaration form?
TP-A-30:
TP declaration: –
Related party transactions value for goods and products > EUR 6million per fiscal year; or Sum of all or other services > EUR 600,000 per fiscal year.
TP-Q-40:
在德國甚麼情況下, WFOE 外商投資企業需要向該國稅務局發送TP 申請和文件? 甚麼 declaration 表單名和文檔名?
What are the scenarios in Germany, that a Wholly Foreign-Owned Entity (WFOE) is required to submit TP declaration and TP documentation to the country’s tax bureau? What is the name of the TP declaration form and TP documentation form?
TP-A-40:
TP declaration and Local File: –
Related party transactions value for goods and products > EUR 6million per fiscal year; or Sum of all or other services > EUR 600,000 per fiscal year.
Master File: –
The German taxpayer is part of MNC group and its Total Revenue in the preceding fiscal year >EUR 100million.
CbC Report and notification: –
An Ultimate Parent Entity in Germany has Consolidated UPC’s revenue > EUR 750million in the previous year.
Germany TRANSFER PRICING for professionals
Overview
Germany is a member of the OECD. It follows the definition of the arm’s length principle stipulated in Article 9 of the OECD Model Tax Convention.
TP rules apply to German taxpayers, including German branches of overseas companies.
Inter-company transactions generally must be evidenced by written agreements to be accepted by the German tax authorities. An agreement must be concluded before the respective transaction is executed.
Related Party
Direct or indirect shareholding of at least 25%, a controlling influence or substantial influence.
Acceptable Transfer Pricing method
- Comparable Uncontrolled Price (CUP)
- Resale price
- Cost-plus
- Transactional profit split
- Transactional net margin
A formal Transfer Pricing documentation is not required when the below: –
- Related party transactions value for goods and products <= EUR 6million per fiscal year; or
- Sum of all or other services <=EUR 600,000 per fiscal year.
Documents such as contracts, information, and explanation relevant still need to be submitted to tax authorities upon request.
However, there is less formal TP documentation to be prepared for inter-company transactions.
Due dates and respective threshold:
| Preparer | Due Date | Threshold | |
| 1. TP declaration forms | |||
| TP declaration | CE in Germany | Submit together with the Income Tax Return before due 31 July of the following calendar year. | Related party transactions value for goods > EUR6million per fiscal year or all other services > EUR 600,000 per fiscal year. |
| 2. TP documentation | |||
| 2.1 Local File | UPE and CE in Germany | Prepare not later than due date of Income Tax Return on 30 June of the following fiscal year and submit within 60 days upon request by Tax authority. | Either condition satisfied: 1. Related party transactions value for goods and products > EUR 6million per fiscal year. 2. Other transactions value >EUR 600,000 per fiscal year. |
| 2.2 Master File | UPE and CE in Germany | Prepare not later than due date of Income Tax Return on 30 June of the following fiscal year and submit within 60 days upon request by Tax authority. | The German taxpayer is part of MNC group and its Total Revenue in the preceding fiscal year >EUR 100million. |
| 2.3 Country-by-Country (CbC) Report | |||
| 2.3.1 Country-by-Country (CbC) Report | UPE in Germany | Prepare and submit within 12 months after the fiscal year-end of UPE. | Consolidated UPC’s revenue > EUR 750million in the previous year. |
| 2.3.2 CbCR notification | UPE in Germany | By the due date of the income tax return of the notifying entity. | Consolidated UPC’s revenue > EUR 750million in the previous year. |
Please be aware of below Warning:
The above contents are digested by Evershine R&D and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.
Contact Us
Frankfurt Evershine BPO Service Limited Corp.
Email: fra4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak German, English and Chinese.
skype: burlinna
or
For how to exchange data files between your Finance Accounting System and Evershine Cloud Accounting Information System, please send an email to HQ4fra@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
LinkedIn address: Dale Chen
Additional Information
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Partner Kerry Chen, USA Graduate School and a well-English speaker
Tel No.: +886-2-27170515 ext. 105
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Email: kerrychen@evershinecpa.com
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