Germany - Local Requirements – Aibidia

Source:

German Fiscal Code (AO), Section 90: Cooperation Obligations of the Parties.
Regulation on the type, content and scope of records within the meaning of § 90 paragraph 3 of the Tax Code (Gewinnabgrenzungsaufzeichnungs-Verordnung - GAufzV) of July 12, 2017.
Bundesrat, Legislative Resolution of the German Bundestag: Fourth Act for the Relief of Citizens, Businesses, and Administration from Bureaucracy (Fourth Bureaucracy Relief Act), Document 474/24, September 27, 2024.
Bundesministerium der Finanzen, Guidelines on the Transaction Matrix pursuant to § 90 paragraph 3 sentence 2 number 1 AO, April 2, 2025.

Summary of local requirements

Strict Format: Not specified

Language: German

To download the legislation in the original language, go to:

Effective January 1, 2025, the obligation to proactively submit documentation (without prior request) upon notification of a tax audit will be limited to the following:

An overview of business transactions ("Transaction Matrix"),
The Master File (if applicable), and
Records of extraordinary transactions (if applicable).

The country-specific, company-related documentation ("Local File") will also be expanded to include the Transaction Matrix. As a result, the Local File must include the following three core components:

Transaction Matrix (Overview of business transactions)
Factual Documentation (Detailed presentation of business transactions)
Appropriateness Documentation (Explanation of the economic and legal basis for agreements consistent with the arm’s length principle)

Transaction Matrix (Overview of business transactions)

	While the use of the sample format provided in the annexe to the BMF Circular is not mandatory, the matrix must systematically present all intercompany transactions relevant for transfer pricing purposes. The required contents align with Section 90 (3) of the German Fiscal Code (AO) and the Regulation on the Recording of Profit Allocations (GAufzV) and include:
a)	The subject and nature of the transactions
b)	The parties involved, identifying the service recipient and provider
c)	The volume and remuneration of the transactions
d)	The contractual basis
e)	The transfer pricing method(s) applied
f)	The tax jurisdictions concerned
g)	Whether transactions are subject to non-standard taxation in the relevant jurisdiction

Recommendations for Transaction Matrix:

Regarding content requirements:

Germany requires a transaction matrix that systematically presents all intercompany transactions relevant for transfer pricing purposes and captures the key data points set out in the BMF guidance (e.g., deliverer/recipient, transaction type/object, volume and remuneration, contractual basis, TP method, and jurisdictions).

We recommend that German legal entities use Aibidia’s dedicated Germany Transaction Matrix template under Jurisdiction-Specific Data to capture these required data points in the intended structure. Populate the “Remuneration/Value” fields with the monetary consideration in EUR (or converted to EUR where needed) and use the “Volume” field to reflect the relevant base/quantity where applicable; the unit for “Volume” can be defined by the user (e.g., pcs, labour hours), so select a meaningful unit per transaction type and apply it consistently within the fiscal year.

Regarding format/structural requirements:

Germany does not prescribe a single standardised filing form for the transaction matrix, but the BMF guidance provides a model layout and specifies the required elements the matrix should contain.

We recommend using Aibidia’s dedicated Germany Transaction Matrix template export as the primary deliverable for Germany to ensure the output is aligned with the expected structure and fields, and to support a consistent, audit-ready presentation across German legal entities and fiscal years.

Records of extraordinary business transactions

GAufzV §3 does not prescribe an official “template,” but it does set the timeliness standard and provides an explicit (non-exhaustive) list of what counts as extraordinary business transactions.

(1)

Records for extraordinary business transactions are considered prepared in a timely manner if they are created in close temporal connection with the transaction/event.

They are still deemed timely if prepared within six months after the end of the fiscal year in which the event occurred.

(2)

Extraordinary business transactions include, in particular:

1. entering into and amending long-term contracts that significantly affect the amount of the taxpayer’s income from its business relationships.

2. asset transfers as part of restructuring measures.

3. the transfer and making available (licensing/allowing use) of assets in connection with significant changes in functions and risks within the business.

4. transactions in connection with a change in business strategy that is significant for transfer pricing.

5. concluding cost allocation / cost contribution agreements.

Recommendations for Records of extraordinary business transactions:

Regarding content requirements:

Germany requires “timely” documentation for extraordinary business transactions (prepared in close temporal connection with the event and treated as still timely if prepared within six months after the end of the FY in which the event occurred), and provides a non-exhaustive list of examples (e.g., restructurings/asset transfers, significant FAR changes with asset transfers/licensing, TP-relevant strategy changes, long-term contracts with significant income impact, and cost allocation agreements).

Although there is no dedicated Aibidia “extraordinary transactions template,” we recommend documenting extraordinary transactions primarily through Aibidia’s standard OECD-based workflow: record the intercompany transaction in the Transactions section, map it to the relevant TP policy (TP model/TP function) so that the TP/valuation approach, assumptions, and standard OECD-aligned rationale are captured in the normal solution structure, and map the relevant legal agreement(s) to the transaction via the Map Policies & Agreements to Transactions functionality for clear traceability. Use the Additional Information column to capture Germany extraordinary-transaction-specific points that do not fit elsewhere (e.g., explicitly flagging the event as an “extraordinary business transaction” under GAufzV §3, recording the event date/timeline for timeliness substantiation, and providing a brief cross-reference to where the full “event package” evidence is stored).

Regarding format/structural requirements:

Germany does not prescribe a standardised official form/template for extraordinary business transactions documentation; the requirement is to have audit-ready records that can be produced when requested and that meet the timeliness expectation described in GAufzV §3.

We recommend storing all supporting documentation (contracts, board/management approvals, valuations, intercompany agreements, etc.) as attachments when producing the Local File, and clearly cross-referenced from the "Additional Information" entries in the Transactions section, so they can be produced together with the transaction matrix and master file when required by a German audit order.

Local File (Factual Documentation and Appropriateness Documentation)

§4(1)	The taxable person shall, in accordance with §§ 1 to 3, the following records, insofar as they are of fiscal significance for the audit of the taxpayer’s business relations within the meaning of Section 90 (3) sentences 1 and 2 of the Tax Code
§4(1)1.	General information on the shareholding relationships, the business operations and the organizational structure: a) a description of the shareholding relationships between the taxpayer and related persons within the meaning of Section 1(2) (1) and (2) of the Foreign Tax Act with whom the taxpayer has business relations, either directly or through intermediaries, at the beginning of the audit period and a description of changes in these shareholding relationships within the audit period b) a description of other circumstances that may constitute related parties within the meaning of Section 1(2)(3) of the Foreign Tax Act c) a description of the organizational and operational structure of the Group, including operating facilities and investments in partnerships, at the beginning of the audit period and a description of changes in the structure of the Group during the audit period d) a description of the management structure and the organizational structure of the taxpayer's domestic company e) a description of the taxpayer's areas of activity and business strategy at the beginning of the audit period and a description of changes in the areas of activity and business strategy during the audit period.
§4(1)2.	Records of the taxpayer's business relationships: (a) a description of the taxpayer's business relationships, an overview of the nature and scope of these business relationships, for example, purchases of goods, services, loans and other transfers of use, and cost allocations, and an overview of the contracts underlying the business relationships and the changes within the audit period b) a list of the main intangible assets owned by the taxpayer and used or transferred for use in the course of its business relations.
§4(1)3.	Functions, Assets and Risk analysis: (a) information on: aa) the functions performed and risks assumed within the scope of the business relationships at the beginning of the audit period, as well as the changes in these functions and risks within the audit period bb) the significant assets used cc) the agreed contractual terms and conditions dd) the selected business strategies, and ee) the market and competitive tax-relevant conditions b) description of the value chain and presentation of the taxpayer's contributions to the value chain; Section 1(3) sentence 4 of the Foreign Tax Act shall be observed.
§4(1)4.	Transfer pricing analysis: (a) date of transfer pricing determination (b) record of the information available at the time of transfer pricing and used to determine the price, which is relevant for taxation (c) description of the transfer pricing method used (d) justification of the selection and appropriateness of the transfer pricing method applied (e) documentation on the calculations made in applying the selected transfer pricing method, and (f) a list and description of comparable internal or external transactions used.
§4(2)	In addition to the records referred to in paragraph (1), the following records shall be kept, depending on the circumstances of each case: 1. Information on special circumstances, such as benefit-sharing measures, to the extent that they may influence the determination of the taxpayer's transfer prices. 2. In the case of apportionments, the contracts, if applicable in connection with the annexes, the appendices and the supplementary agreements, the documents on the application of the apportionment formula and on the expected benefit for all parties involved, as well as the documents on the type and scope of the accounting control, on the adjustment to changed circumstances, on the access authorization to the documents of the company providing the service and on the allocation of rights of use. 3. Information on requested or completed mutual agreements or arbitration procedures of other countries as well as on unilateral offset price commitments and other advance tax commitments of foreign tax administrations that affect the business relations of the taxpayer. 4. Records of price adjustments made by the taxpayer, even if these are the result of billing price corrections or advance commitments made by foreign tax authorities to persons related to the taxpayer. 5. Records on the causes of losses and on measures taken by the taxpayer or persons close to the taxpayer to eliminate the loss situation, if the taxpayer reports a tax loss from business relations in more than three consecutive fiscal years. 6. In cases of changes of function and risk, records of research projects and ongoing research activities which may be related to a change of function and which took place or were completed in the three years prior to the implementation of the change of function; the records shall contain at least information on the exact subject of the research and the total costs to be allocated in each case. This shall only apply to the extent that a taxpayer conducts research and development and prepares documents on its research and development work from which the aforementioned records can be derived.
§4(3)	If the taxpayer uses databases to determine its transfer prices, it must fully disclose the search strategy it uses, the search criteria it uses, the search result and the further selection process carried out outside the database (search process). The taxpayer's entire search process must be traceable and auditable at the time of the external audit. The configuration of the database with which the specific search process was carried out must be fully documented. § Section 147(6) of the Tax Code shall apply mutatis mutandis.

Recommendations for Local File:

Regarding content requirements:

Audit-period change tracking

Germany requires multiple items to be described “at the beginning of the audit period” and to disclose “changes within the audit period” (e.g., shareholdings, group structure, functions/risks, contracts, and business strategy).

We recommend documenting these change notes directly where the related baseline content is maintained in TPDoc—e.g., add “changes during the audit period” statements in the Legal Entity pages (Entity Description / Business Description / Business Strategy Description) and, where relevant, in the mapped transaction/policy descriptions so the starting position and changes are clearly visible.
Date of TP determination + information available at that time

Germany explicitly requires the date of transfer pricing determination and a record of the information available at that time that was used to set the price.

We recommend capturing this at policy/method level in TPDoc by using the Standard Policies – TP Models → Methods view and completing the Price Setting Description field (and related method rationale fields where available) to record: (i) the price-setting date/approval date, and (ii) the information set used (e.g., budget/forecast version, financial dataset cut, benchmark selection date/version, and any internal approval memo reference).
Database search traceability (including database configuration)

If databases are used, Germany requires full disclosure of search strategy, criteria, search results, screening steps outside the database, and documentation of the database configuration used; the process must be traceable and auditable at the time of audit.

We recommend saving a complete “benchmark audit trail pack” (search steps, criteria, outputs, screening logic, final set rationale, and evidence of the database configuration) as an attachment in Benchmarks & Comparables for the relevant benchmark, and mapping that benchmark to the relevant transactions/policies so it can be retrieved immediately for audit support.
Special circumstances influencing TP

Germany requires documentation of special circumstances (e.g., benefit-sharing measures) to the extent they may influence the determination of transfer prices.

We recommend documenting these circumstances at the point where the pricing policy is explained—i.e., record the circumstance and its pricing impact in the relevant TP Model / TP Policy description, and attach any quantitative support (calculations, allocation keys, adjustment mechanics) as supporting files and linked to the same policy/transaction.
Apportionments/allocations (Umlagen):

Germany requires detailed documentation for allocations, including contracts (with annexes), application of the allocation key, expected benefit for all participants, and governance/control elements (e.g., invoice control, adjustment mechanics, access rights, allocation of rights of use).

We recommend creating one “allocation package” per arrangement by (i) mapping the relevant Legal Agreement(s) to the allocation transactions via Map Policies & Agreements to Transactions, and (ii) attaching the allocation key calculations, benefit test, and governance/control documentation to the same transaction/policy record so all required items can be exported together.
MAP/arbitration and foreign advance commitments affecting the transactions

Germany requires information on requested/completed MAP/arbitration procedures in other countries and unilateral offset/advance commitments by foreign tax administrations that affect the taxpayer’s business relations.

We recommend maintaining a central register of these items in TPDoc and linking them to impacted transactions by using the Rulings section (where available) and mapping the relevant rulings/commitments to the affected transactions/policies for traceability.
Price adjustments

Germany requires records of price adjustments made by the taxpayer, including those resulting from billing corrections or foreign tax authority advance commitments to related parties.

We recommend recording each adjustment on the affected transaction line(s) and documenting the “why + how calculated + how booked” in the Price Setting Description field, and uploading the adjustment calculation file(s) as attachments and mapping them to the Local File, so the adjustment trail is auditable end-to-end.
Sustained losses

Germany requires records on causes of losses and measures taken to eliminate the loss situation if tax losses from business relations are reported in more than three consecutive fiscal years.

We recommend documenting this in the relevant Legal Entity narrative (business description/strategy) and linking it to the affected transaction set (e.g., distribution/services) by referencing the applicable TP policy and attaching the supporting loss analysis and remediation plan.
R&D records linked to function/risk changes (where applicable)

For function/risk changes, Germany may require records of research projects and ongoing R&D activities from the prior three years, including at least the research subject and total costs to be allocated (to the extent such R&D documentation exists).

We recommend documenting the function/risk change in the relevant TP Model / TP Policy description, and uploading a concise R&D project summary (subject + cost totals + linkage to the change) and attaching it to the Local File, so it can be produced quickly if requested.

Regarding format/structural requirements:

Germany prescribes Local File content through GAufzV §4 (including conditional add-ons and database-search traceability) but does not impose a standardised filing form.

We recommend keeping the Local File structure aligned to GAufzV §4(1) (general information; business relationships; FAR/value chain; TP analysis) and maintaining Germany-specific add-ons (e.g., allocation packages, benchmark audit trail packs, adjustment logs) as clearly labelled, transaction-linked attachments so they can be exported and provided consistently in an audit.

Master File

	Master File should contain (Appendix to §5):
1.	Graphical representation of the organizational structure (legal and ownership structure) as well as the geographical distribution of the companies and permanent establishments belonging to the group of companies within the meaning of Section 90(3) of the Tax Code.
2.	Overview of significant factors for the overall profit of the corporate group.
3.	Description of the supply chains for the five products or services of the group that generate the highest revenues (a meaningful graph or chart will suffice).
4.	Description of the supply chains for all other products or services that account for more than 5 percent of the group's revenues (a meaningful graph or chart will suffice).
5.	A listing and summary description of significant service arrangements between Group companies (excluding research and development services), including a description of the capabilities of the principal sites providing significant services and the charging policies for allocating the cost of services and for determining the prices to be paid for Group-internal services.
6.	Description of the principal geographic markets for the Group's products or services (see items 3 and 4).
7.	Summary functional analysis describing the main contributions made to value creation by each company in the group, i.e. the key functions performed, the important risks assumed and the important assets used.
8.	Summary description of significant restructurings of the Group's operations that occurred during the fiscal year, as well as a listing and summary description of significant acquisitions and disposals of businesses made by the Group during the fiscal year.
9.	General description of the Group's overall strategy for intangible assets (development, ownership, protection and exploitation), including a listing of the locations of the main research and development facilities and the locations of research and development management.
10.	Listing of the intangible assets or groups of intangible assets of the corporate group that are relevant for transfer pricing.
11.	Listing of significant agreements between the entities in the group related to the intangible assets, including cost allocation agreements and significant research service agreements and license agreements.
12.	General description of the group's transfer pricing policy in relation to research and development and intangible assets.
13.	General description of all significant transfers of rights to intangible assets between the entities of the group during the relevant fiscal year, including the relevant entities, countries and remuneration.
14.	General description of how the group is financed, including a description of significant financing relationships with third parties.
15.	Identification of those entities in the group that perform a central financing, cash management or asset management function, with an indication of the law under which each entity is organized and the location of the effective management of each entity.
16.	General description of the group's transfer pricing strategy with respect to financial relationships within the group.
17.	Consolidated financial statements of the group of companies for the relevant fiscal year, if such financial statements have been prepared.
18.	List and brief description of existing unilateral advance agreements on transfer pricing of the group of companies as well as other advance commitments in connection with the allocation of income between the countries.

Recommendations for Master File:

Regarding content requirements:

No additional Germany-specific Master File content elements (beyond the GAufzV Annex list) were identified that would require a workaround outside the standard OECD Master File structure.

We recommend completing the Master File in TPDoc as usual and using the GAufzV Annex list as a final completeness check to ensure each German item is explicitly covered in the output.

Regarding format/structural requirements:

Germany prescribes the Master File content via the GAufzV Annex (to §5) but does not impose a standardised filing form or mandatory electronic template.

We recommend structuring the Master File output so that headings clearly map to the GAufzV Annex items (to support fast navigation in an audit) and keeping the narrative consistent year-on-year.