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CHAIRMAN’S INSIGHTS

Think global, act local

With effect from October 18, 2014, the Regulation on Profit Distribution of Permanent Establishments came into force in Germany, which regulates the nature and manner of the calculation of the income of permanent stablishments and explains the required documentation components for this purpose (auxiliary and additional calculation).

It specifically deals with:
- Agreements between a permanent establishment and the company it is part of,
- which specificities for certain branches have to be complied with (especially banks, insurance companies, construction and installation businesses, etc.)
- in which cases it can be assumed to avoid the difficulties of proof because of rebuttable presumptions

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