Germany - Draft Ministry of Finance Decree on the Transfer of Business Functions Abroad
- P.H. Dehnen; S. Junghans; R. Rhines
- International Transfer Pricing Journal, 2009 (Volume 16), No 6
- 27 October 2009
A new provision of the Foreign Tax Act contains special rules for how to comply with the arm’s length principle with regard to the transfer of business functions abroad. Regulations related to this amending provision have been issued by the Ministry of Finance, followed by a clarifying draft decree. This article provides an overview of the draft decree, as well as a discussion of some of the more important issues which first appear in the draft decree.