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Spectrum Tax Consultancy Accounting Co-Operation Partner News New German transfer pricing documentation rules came into effect. This means that all companies acting internationally do have to consider those rules to avoid transfer pricing adjustments and extensive penalties. TiB helps you to set up a defence strategy. As soon as you are doing business with affiliated German companies or even if you operate your business through a German branch, you have to document general and specific circumstances of your business relationship. Also you have to proof that your transfer pricing is according to the arm’s length principle. If not fulfilling the documentation requirements the tax authorities is authorized by law to choose the most unfavourable transfer price within the range of possible and adequate prices. Furthermore penalties of 5% - 10% of the additional income that results out of the auditor’s price adjustments, at least EUR 5,000, will be imposed. Also an administrative fine will be assessed if the documentation is not provided in time (at least EUR 100 per day, up to EUR 1,0 Mio.). The extent of penalties has not been known to the German tax law yet! TiB Trust in Business Steuerberatungsgesellschaft mbH offers you advice how to avoid the penalties. Please ask for our free detailed information letter and contact our transfer pricing specialist Ernst Altweger, Tax Consultant, Managing Director (ernst@tib-tax.com). News Starting January 1, 2004, changes of the rules about withholding wage taxes are to be considered by international companies. The economic employer will be liable for the wage taxes in the future. [more...] Foreign Companies can claim for paid German VAT. Please consider a court decision that only original invoices entitle for a VAT refund. [more...]