Type of publication: Technical

AGN EMEA Tax Committee News.

The requirement to create transfer pricing documentation impacts not just large corporations, but also small and medium-sized businesses (SME’s), who often lack awareness of this obligation. It’s crucial to address this issue promptly to prevent time constraints and potential penalties from tax authorities if documentation becomes necessary.

Read on for a summary of the obligations that exist in Germany and what you should be prepared for.

AGN EMEA Tax Committee News

Public Country-by-Country Reporting – To what extent do large companies contribute to public prosperity through their taxes? Public Country-by-Country Reporting (CbCR) is a regulatory requirement for corporations to disclose detailed financial and operational information on a country-by-country basis.

From AGN EMEA Tax Committee members and AGN tax correspondents

Permanent Establishment and Fixed Business Facility for Service Providers in Germany: A foreign company operating in Germany must be assessed from a tax perspective to decide whether the establishment is a ‘permanent establishment’ or not. The existence of a permanent establishment has various consequences, especially Germany’s right to tax the income attributable to the permanent establishment in Germany.