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Germany Adopts Latest OECD Guidelines on Cost Contribution Arrangements

|Approved Changes|Germany
Germany

The German Ministry of Finance has published a letter regarding the principles for the determination of income under cost contribution arrangements between cross-border related parties. The letter provides that the principles of chapter VIII of the 2017 OECD Transfer Pricing Guidelines will be applied for fiscal years beginning after 31 December 2018. In particular, the letter notes that contributions made under cost contribution arrangements must be valued and reimbursed at arm's length on …

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