News and views

New Transfer Pricing brochure on the residual profit split method

Dr. Sven Helm, LL.M. (UC Davis), RA/StB, Moore Treuhand Kurpfalz, leader of the Transfer Pricing Group of Moore Global, is the author of this new brochure from the “Tough Leadership” series.

Multinational enterprises more and more opt for transfer pricing methods such as the Profit Split Method using a residual analysis (RPSM). In the context of cross-border transfer pricing and the ongoing digitalisation process emphasis is placed on platform concepts.

So far, the application of the residual profit split method has been rare and rather unusual in Central Europe, but especially in Germany. However, it offers some advantages as a solution approach: On the one hand, it takes into account current developments at the OECD level (so-called DEMPE approach and hard-to-value intangibles). On the other hand, as a testing model, this method offers the advantage that incentive structures, especially for management and senior executives, do not necessarily have to be adapted due to existing contracts.

Due to the emergence of new business models, it is to be assumed that the residual profit split method is going to be applied more often in the future.

The residual profit split method and its new acceptance in Europe related to platform concepts

Back

Reform of Real Estate Transfer Tax — End of RETT blocker model

The Act Amending the Real Estate Transfer Tax Act will now come into force on July 1, 2021.

Read more

Information on Interim Aid III

This article presents the main features of Interim Aid III, which is intended to support companies, the self-employed and freelancers in all sectors during the pandemic.

Read more

Corona Information for Germany N° 3_2021

Here we inform you about the most important measures and information from the Federal Republic of Germany and its Federal States.

Read more