The Resource Arm's length net income for German withholding tax and tax declaration purposes

Arm's length net income for German withholding tax and tax declaration purposes

Label
Arm's length net income for German withholding tax and tax declaration purposes
Title
Arm's length net income for German withholding tax and tax declaration purposes
Creator
Subject
Language
eng
Summary
One hundred years after its creation in 1920, section 49 (1) no. 6 and its 1994 derivative no. 2f of the German Income Tax Act (ITA) are becoming the focal point of a heated discussion, primarily among US headquartered multinationals. The reason for this development is that the Big Four, as their auditors, are forcing their audit clients to build reserves for the potential application of sec. 49 (1) no. 6/no. 2f ITA. The reason is that this provision may apply to a specific type of cross-border intra-group transaction into which US headquartered multinationals have entered. Transactions in scope are the sale or licensing of intellectual property that a larger number of US multinationals have entered into in the aftermath of the introduction of the BEPS measures to the extent that they have a German nexus. These measures have been translated into national tax provisions, e.g. the German ATAD Transformation Act, Bill as of 24 March 2020, and treaty provisions through the OECD, Multilateral Convention to implement Tax Treaty related Measures to prevent Base Erosion and Profit Shifting (MLI)
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 48 (2020), no. 8/9 ; p. 831-835
http://library.link/vocab/creatorName
Andresen, U
Geographic coverage
  • European Union
  • Europe
  • North America
Language note
English
http://library.link/vocab/subjectName
  • limited tax liability
  • MNE
  • nexus
  • withholding tax
  • transfer pricing
  • intellectual property
  • licensing
  • cost plus method
  • case law
Label
Arm's length net income for German withholding tax and tax declaration purposes
Instantiates
Publication
Label
Arm's length net income for German withholding tax and tax declaration purposes
Publication

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