Transfer pricing

Both German legislation and the material published by the country’s financial administration authority contain extensive guidelines and regulations which dictate how interaction with foreign-based companies at supply-and-service level is required to be documented.

This transfer pricing is not only - but also - checked in the case of corporate groups which operate on an international scale.

Remuneration for supplies or services that is found not to comply with the principles laid down for transfer-pricing can lead to additional or double taxation and – where the necessary documentation is found to be lacking - even to penalty surcharges.