New rules require automatic submission within 30 days of transfer pricing documentation upon notification of an audit
Significant changes to transfer pricing documentation requirements in Germany became effective January 1, 2025 (read TaxNewsFlash), including a requirement to submit transfer pricing documentation for both extraordinary and ordinary business transactions within 30 days of receiving notification of a tax audit.
Extraordinary business transactions
The term extraordinary business transaction (EBT) is an undefined legal term in German tax law, but generally EBTs are understood to mean the opposite of ordinary business transactions, often resulting in substantial changes in income. The following are examples of EBTs under German tax law:
Transfer pricing documentation requirements for EBTs
Unlike transfer pricing documentation for ordinary transactions, EBTs require proactive and contemporaneous documentation within six months following the fiscal year in which an EBT occurs. In addition, while ordinary transfer pricing documentation could be prepared and submitted within 60 days of a request from the tax authority, extraordinary transfer pricing documentation had to be submitted within 30 days of a request from the tax authority. Now, both ordinary and extraordinary transfer pricing documentation must be submitted within 30 days of a request from a tax authority, and both must also be submitted automatically within 30 days of a notice of a tax audit.
Read a聽March 2025 report*聽prepared by the 乐鱼（Leyu）体育官网 member firm in Germany
*This report is one in a series prepared by the 乐鱼（Leyu）体育官网 member firm in Germany. Read more on 鈥�German Transfer Pricing Insights,鈥� covering transfer pricing topics that may affect businesses in Germany.