Global

Details

  • Service: Tax, International Corporate Tax, Global Transfer Pricing Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/6/2012

Germany - Cross-border profit allocation, hybrid entities, CFC rules 

July 6:  Action continues on the draft tax law (2013 Tax Act) as submitted by the Ministry of Finance, and completion of the legislative process is expected by year-end 2012.

The legislation includes the following measures:


  • A reduction in the period of time for record retention
  • Clarification of the rules for cross-border profit allocation, independent of whether the investment is made via a corporation, partnership or permanent establishment
  • Rules for refund claims of hybrid entities in income tax treaty situations
  • A “motive test” under the CFC rules

Recent legislative action includes proposed amendments by the German upper house (Bundesrat).


Read a July 2012 report [PDF 94 KB] prepared by the KPMG member firm in Germany: German Tax Monthly (July 2012)




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