Regulation On The Application Of The Arm's Length Principle On Premises According To § 1 Paragraph 5 Of The Foreign Tax Act

Original Language Title: Verordnung zur Anwendung des Fremdvergleichsgrundsatzes auf Betriebsstätten nach § 1 Absatz 5 des Außensteuergesetzes

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Read the untranslated law here: http://www.gesetze-im-internet.de/bsgav/BJNR160300014.html

Regulation on the application of the arm's length principle on premises according to § 1 paragraph 5 of the foreign tax Act (operating profit distribution Ordinance - BsGaV) BsGaV Ausfertigung date: 13.10.2014 full quotation: "operating profit distribution Ordinance by 13 October 2014 (BGBl. I S. 1603)" footnote (+++ text detection from: 18.10.2014 +++) (+++ to first-time application cf. § 40 +++) (+++ application cf. §§ 20, 21, 25, 26 +++) input formula on the basis of article 1 paragraph 6 of the foreign tax Act, by article 6 number 1 letter e of the Act of 26 June 2013 (BGBl. I S. 1809) is been attached , directed the Federal Ministry of Finance: table of contents section 1 General part of subsection 1 General provisions article 1 attribution of income to a permanent establishment § 2 definitions article 3 of auxiliary and Nebenrechnung subsection 2 mapping rules section 4 assignment of HR functions section 5 assignment of material economic goods § 6 assignment of intangible values § 7 allocation of investments, financial assets, and similar assets § 8 mapping of other assets section 9 assignment of transactions of the company section 10 mapping of risks section 11 mapping of hedging transactions under section 3 dotation capital , other liabilities and finance costs § 12 dotation capital of domestic permanent establishments of foreign companies § 13 dotation capital of foreign permanent establishments of domestic companies § 14 mapping other liabilities section 15 allocation of finance costs under section 4 serious debt relations section 16 principle article 17 financing function within a company section 2 special features for bank establishment § 18 General section 19 special assignment provisions article 20 dotation capital domestic bank establishment of foreign credit institutions, banking supervisory law section 21 dotation capital foreign bank branch of domestic credit institutions, Bankenaufsichtsre cycles section 22 global trade with financial instruments section 3 characteristics for insurance permanent establishment § 23 General section 24 special assignment provisions § 25 capital domestic insurance establishment of foreign insurance companies, insurance supervisory law section 26 dotation capital foreign insurance branch of domestic insurance companies, insurance supervisory law section 27 allocation of income from assets § 28 reinsurance within a company section 29 pension funds and insurance special purpose vehicles section 4 specificities for construction and assembly operations section 30 General article 31 specific mapping rules § 32 serious debt relations , to be regarded as a service are serious debt relations in special cases § 34 article 33 transitional arrangements for construction and assembly operations section 5 specifics for support establishment § 35 General § 36 specific mapping rules 37 § serious debt relations section 38 transitional arrangements for funding facility section 6 Permanent Representative § 39 Permanent Representative section 7 final provisions § 40 first-time application of section 41 entry into force section 1 General part of subsection 1 General provisions § 1 attribution of income to a permanent establishment (1) for the tax to statement of income to a permanent establishment of a company according to § 1 paragraph 5 of the foreign tax act is a function and risk analysis of the business activity of the permanent establishment (§ 12 of the tax code) as part of the business activity of the company making. A comparability analysis of the business activity of the establishment is based on the function and risk analysis pursuant to sentence 1 perform to determine transfer prices for the business of the permanent establishment within the meaning of section 1, paragraph 4 of the foreign tax act that correspond to the arm's length principle (§ 1 paragraph 1 sentence 1 of the foreign tax Act).
(2) on the basis of the function and risk analysis of business activity of the permanent establishment 1 HR functions are (section 1, paragraph 5, sentence 3 number 1 of the foreign tax Act), to associate the establishment or the other companies are to determine, in particular the relevant HR functions, 2. are the permanent establishment based on the relevant HR functions, assets, (section 1, paragraph 5, sentence 3 number 2 of the foreign tax Act) as well as risks and opportunities (section 1, paragraph 5, sentence 3 number 3 of the foreign tax Act) to allocate , 3 is the establishment, starting from the assets associated with it, as well as the associated opportunities and risks, a capital (section 1, paragraph 5, sentence 3 number 4 of the foreign tax Act) to allocate to allocate liabilities to the permanent establishment, insofar as this is necessary due to the allocation of assets, opportunities and risks as well as Endowment capital are 4, 5 are to allocate business transactions of the company with independent third parties and related parties within the meaning of article 1(2) of the foreign tax act to the establishment and are 6 on debt relations in the sense of § 1 paragraph 4 sentence 1 number 2 of the foreign tax act to determine which has the facility to the other companies.

Article 2 definitions (1) for the purposes of this regulation is a company domestically if the place of effective management is in Germany.
(2) for the purposes of this regulation, a company is foreign, if the place of effective management is in a foreign country.
(3) a staff function is a business activity that is carried out by staff of the company for the company. HR functions are in particular the following activities: 1 use, 2. the acquisition, 3. production, 4. Administration, 5. the sale, 6 development, 7 protection, 8 risk control and 9 decision, changes in terms to make chances and risks.
(4) own staff is any natural person who is acting on the basis of a gesellschaftsvertraglichen or employment agreement with the company for the company. A natural person among the own personnel of the company even if another company contractually committed, to the natural person left the company as a staff and is limited to providing the commitment. A natural person who is working without any contractual agreement for the company belongs to the own personnel of the company, if the natural person 1 is entrepreneurs or shareholders of the company or 2 is close to the company or the shareholders of the company within the meaning of article 1(2) of the foreign tax act.
(5) the HR function of a permanent establishment is decisive for the allocation of assets, opportunities and risks or business transactions, if the greatest importance for the respective subject of Association comes to the exercise of this HR function in the usual business in relation to the HR functions are exercised in other branches of the company. Staff functions, only the general business policy of the company affecting 2 or related to the subject of assignment 1 have only supporting character, in particular are not applicable.
(6) assets are assets and benefits within the meaning of this regulation. The assets include in particular 1 material assets, 2. intangible assets including intangible assets, 3. investments and 4. financial assets.

§ 3 is aid and Nebenrechnung (1) for a facility to set up a relief and Nebenrechnung at the beginning of a marketing year, to continue during the marketing year and to complete at the end of the marketing year. The completion of the auxiliary and Nebenrechnung includes the result of the permanent establishment. The relief and Nebenrechnung must at the time of submission of a tax return be created no later than, 1 to which the company is obliged (§ 149 of the tax code) and take into account the income of the permanent establishment are 2nd in the.
(2) the relief and Nebenrechnung includes all the components which are the permanent establishment on the basis of their human resources functions to associate (section 4). These include
1. the assets (paragraphs 5 to 8), when they would have to are covered by a separate company in the tax accounting, 2. capital (sections 12 and 13), 3. the remaining liabilities (section 14) as well as 4 with the constituents within the meaning of sentence 1 related operating revenue and operating expenses.
The relief and Nebenrechnung includes also fictitious operating revenues and fictitious business expenses that arise due to increased contractual relations (articles 16 and 17).
(3) in the records, which to create and submit are according to § 90 (3) sentence 4 of the tax code on request, are also present 1 the reasons for the allocation of the constituents, including the reasons for the allocation of the business transactions of the company (§ 9), the opportunities and risks (article 10) and the hedging transactions (section 11), as well as 2 waxing on the reasons for the existence of contractual relations (articles 16 and 17).
(4) If a permanent establishment is founded, the first relief and Nebenrechnung for the facility is so at this time to create. Terminates a permanent establishment, the relief and Nebenrechnung is at this time to complete. Transition of assets and liabilities, as well as opportunities and risks between the permanent establishment and the other companies to be taken at the time of the establishment or the termination of an establishment constitutes serious debt relations in the sense of paragraph 16 (5) the relief and Nebenrechnung of a permanent establishment of a company which is subject to accounting neither domestic nor foreign law and that causes actually no books that is according to a revenue surplus calculation in the sense of § 4 paragraph 3 of the income tax act to create. At the time of the termination of the permanent establishment of an auxiliary and Nebenrechnung is to create, which contains a list of the assets.
Section 2 allocation regulations section 4 assignment of human resources functions (1) an is HR function to associate the establishment in which the personnel function is exercised. A staff function is however not to allocate a permanent establishment, if the personnel function 1 has no objective relation to the business of the permanent establishment, and 2 in less than 30 days within a year at this facility is exercised.
(2) is a personnel function exercised in the establishment nor the company or an event shall paragraph 1 sentence 2, the personnel function of the site is to associate, objectively is the closest related to the HR function.
(3) a staff function, not clearly assignable to a mapping is to make, which does not contradict paragraphs 1 and 2.

§ 5 assignment of material assets (1) for mapping a physical asset to a permanent establishment is its use the relevant HR function. Later used the same material assets permanently at a different facility, it is from the date of the change of use of other premises to associate. Use changes frequently, a material asset of the facility is to associate, for whose business it is predominantly used.
(2) a tangible asset is an other establishment as those where the material asset is used to assign if outweighs the importance of another staff function exercised in this other establishment clearly over the importance of the human resources function referred to in paragraph 1 by way of derogation from paragraph 1 only. Other HR functions are in particular those which are related to the acquisition, manufacture, management or disposal of the concerned material asset. Immovable property, where the business activity of a permanent establishment is exercised, is always associate this establishment.
(3) other human resources functions within the meaning of paragraph 2 sentence 1 simultaneously carried out in different sites of the company, the material assets of the facility is to associate, whose other staff function the greatest importance for the physical asset.
(4) a tangible asset is not clearly assignable to, a mapping is to make, which does not contradict the paragraphs 1 to 3.

§ 6 assignment of intangible assets (1) for the Association of an intangible value to a permanent establishment is its creation or its acquisition the relevant HR function. HR functions, by their exercise, an intangible value is created or acquired, are at the same time exercised in different sites, the intangible value of the facility's to associate their HR function the greatest importance for the intangible value.
(2) an intangible value is a different site than those that due to their HR function of intangible value is created or acquired, associate, if outweighs the importance of another staff function exercised in this other establishment clearly over the importance of the human resources function referred to in paragraph 1 by way of derogation from paragraph 1 only. Other HR functions are in particular those which are related to the use, management, development, protection or sale of intangible value.
(3) other human resources functions within the meaning of paragraph 2 sentence 1 simultaneously carried out in different sites of the company, the intangible value of the premises shall associate, whose other staff function the greatest importance for the intangible value.
(4) an intangible value is not clearly assignable to, a mapping is to make, which does not contradict the paragraphs 1 to 3. In these cases an intangible value can be associated also proportionately the premises where in the long term the HR functions with the greatest importance be exercised.

§ 7 allocation of investments, financial assets, and similar assets (1) for the assignment of participation, a financial asset or a similar asset to a permanent establishment is the use of the participation, of the financial instrument or of similar asset the relevant HR function. Using results from the functional relationship to the business of the permanent establishment. The functional relationship is at the same time to the business activities of various premises, the asset value of the business premises is so to associate, to the most functional relationship is.
(2) by way of derogation from paragraph 1, sentence 1 an asset within the meaning of paragraph 1 only is an other establishment as those in which the asset within the meaning of paragraph 1 is used set 1, associate, if outweighs the importance of another staff function exercised in this other establishment clearly over the importance of the human resources function referred to in paragraph 1. Other HR functions are in particular those which are related to the acquisition, management, risk management or disposal of an asset within the meaning of paragraph 1 sentence 1.
(3) other human resources functions within the meaning of paragraph 2 sentence 1 simultaneously carried out in different sites of the company, as an asset within the meaning of paragraph 1 is set 1 to associate the establishment, whose other staff function the greatest importance.
(4) an asset within the meaning of paragraph 1 sentence 1 not clearly assignable to be or the predominant functional context changes frequently, a mapping is to make, which does not contradict the paragraphs 1 to 3.

§ 8 assignment of other assets (1) for mapping a not in articles 5 to 7 of mentioned asset (other assets) to a permanent establishment whose creation or its acquisition is the authoritative HR function. HR functions, by their exercise, an other asset is created or acquired, are at the same time exercised in different sites, the other asset of the facility shall associate, whose personnel function is the most important of these other asset.
(2) by way of derogation from paragraph 1, an other asset only to assign a different branch than those that due to their HR function the other asset originated or purchased if outweighs the importance of another staff function exercised in this other establishment clearly over the importance of the HR functions referred to in paragraph 1. Other HR functions are in particular those which are related to the use, management, risk management or disposal of that other asset.
(3) other human resources functions within the meaning of paragraph 2 sentence 1 simultaneously carried out in different sites of the company, the other asset of the facility shall associate, whose other staff function is the most important of these other asset.
(4) an other asset is not clearly assignable to, a mapping is to make, which does not contradict the paragraphs 1 to 3.

§ 9 allocation of transactions of the company
(1) for the assignment of a business transaction (section 1, paragraph 4, sentence 1 number 1 of the foreign tax Act), the company has completed with an independent third party or a related person, a permanent establishment is the personnel function, based on the conclusion of the transaction, the relevant personnel function. Different operations at the same time each exert a staff function, on which is based the conclusion of such transaction, the transaction of the establishment's associate their HR function the greatest importance for the business transaction.
(2) by way of derogation from paragraph 1, a transaction is only then assign a different site than those that due to their HR function of the transaction is established, if outweighs the importance of another staff function exercised in this other establishment clearly over the importance of the human resources function referred to in paragraph 1. Other HR functions are in particular those which are available in connection with the fulfillment of obligations from the business transaction with its management or its risk control.
(3) other human resources functions within the meaning of paragraph 2 sentence 1 simultaneously carried out in different sites of the company, the business transaction, the establishment is to associate, whose other staff function the greatest importance for the business transaction.
(4) a business transaction is not clearly assignable to, a mapping is to make, which does not contradict the paragraphs 1 to 3.

§ 10 allocation of risks (1) opportunities and risks directly associated with an asset within the meaning of sections 5 to 8, or with a business transaction within the meaning of article 9, these opportunities and risks of the permanent establishment are so associate, associate is also the relevant asset or business transaction.
(2) opportunities and risks associated with an asset or a business transaction in the immediate context on the HR function of a permanent establishment, based this HR function for the allocation of opportunities and risks to a permanent establishment is decisive. Is such a personal function is exercised in different sites at the same time, the relevant chances and risks of the permanent establishment are associate, whose personnel function to the great importance for these opportunities and risks.
(3) opportunities and risks to assign an other establishment only as those based on their HR function the risks and rewards, if outweighs the importance of another staff function exercised in this other establishment clearly over the importance of the human resources function referred to in paragraph 2 are by way of derogation from paragraph 2. Other HR functions are especially those, which are connected with the management, risk management or the realization of opportunities and risks, or with the decision, changes in terms of risks and opportunities to perform.
(4) other human resources functions within the meaning of paragraph 3 sentence 1 simultaneously carried out in different sites of the company, the relevant chances and risks of the permanent establishment are associate, whose other staff function is the most important for the chances and risks.
(5) risks and opportunities can be clearly associated, a mapping is to make, which does not contradict the paragraphs 1 to 4.

§ 11 mapping of hedging transactions (1) completes a hedging instrument for the purpose of a company, 1 is certain risks of a personnel function to associate according to § 4 of a permanent establishment, secure, 2. specific risks of an asset to assign to sections 5 to 8 of a permanent establishment, securing or 3 to hedge certain risks of a transaction which is, according to § 9 of an establishment, that fuse's business including the related assets , the hedging are to assign to this facility.
(2) a company completes one or more hedging transactions for the purpose, specific risks of HR functions to associate premises different according to § 4 are 1 to secure certain risks of assets, to associate to the sections 5 to 8 different sites 2., to hedge or 3. certain risks of business transactions, are attributable to permanent establishments pursuant to § 9 different cover, and is a direct mapping of individual assets , the backup purposes to certain risks not possible or direct mapping would cause a disproportionate effort, so an indirect hedging relationship exists. Hedging transactions including the related assets are in these cases, the backup purposes proportionately to assign the premises are allocated to the human resources functions, assets or business transactions that associated risks are hedged. The proportion is to determine a proper allocation key.
(3) hedging transactions are to match only then by way of derogation from paragraphs 1 and 2, when this results in individual cases a result of the permanent establishment, that corresponds better to the arm's length principle.
(4) assets the risks of other assets secure, without that protection is their purpose, so the sections 5 to 8 subsection 3 dotation capital apply to the assignment of businesses and related assets, other liabilities and finance costs § 12 dotation capital of domestic permanent establishments of foreign companies (1) a domestic permanent establishment of accounting subject to foreign law, or actually leading books, foreign company is that proportion of the equity capital of the company to associate the beginning of a marketing year , its share of the assets, as well as the opportunities and risks in relation to the other companies corresponds (capital allocation method).
(2) for the allocation of capital the equity Division, the amount of capital of the foreign company is to determine under German tax law. For simplification reasons the paid-up capital plus the reserves and profit lectures and less the losses according to the foreign balance sheet of the company can be used for mapping, if the company makes believable, 1 that this equity does not vary significantly from under German tax law to be equity or 2nd that deviations to be compensated by adjustments, that the result does not vary significantly from sentence 1.
(3) for the determination of the ratio of domestic permanent establishment, which is used to calculate its Endowment capital of equity Division, are the assets of the establishment as well as the other company with values to be applied, which comply with the arm's length principle and taking into account the opportunities and risks. For simplification reasons book values thus comparable values in the documents of the foreign company can be placed on or, if the company proves, 1 that this review leads to a ratio not significantly by the ratio differs, that itself would be approach of values that correspond to the arm's length principle, or 2 that deviations to be compensated by adjustments, that the result does not vary significantly from sentence 1.
(4) results after the capital allocation method for the domestic permanent establishment an endowment capital permanently giving results, a proper and conscientious Managing Director would not accept, and to determine the foreign company, the part of which is the establishment, to a group of companies that is equivalent to a group within the meaning of section 18 of the companies Act, capital, so to which the permanent establishment belongs, belongs as follows : 1 that consolidated total equity of the group is to be determined according to paragraph 2 and 2 the establishment is a portion of the consolidated equity of the group as capital on a consolidated basis according to the paragraphs 1 to 3 to assign.
(5) at least the capital actually reported in a domestic trade balance of the domestic establishment as capital is to associate a domestic permanent establishment notwithstanding paragraphs 1 to 4.
(6) the allocation of human resources functions, assets or opportunities and risks compared to the beginning of the marketing year changes within one business year and this leads to significant changes in the amount of endowment capital, referred to in paragraph 1 to assign the domestic establishment, capital within the business year is accordingly.
Footnote (+++ § 12: the application see section 20 para 5 and § 25 paragraph 5 +++) § 13 dotation capital of foreign branches of domestic companies (1) a foreign permanent establishment of accounting required under domestic law or actually leading books, domestic company is at the beginning of a marketing year Endowment capital only to allocate, as far as the company makes credible that an endowment capital in this amount for business reasons is required (minimum equity equipment).
(2) a higher Endowment capital as according to paragraph 1 can be associated with a foreign permanent establishment unless the higher endowment in some cases leads to a result of the establishment that corresponds better to the arm's length principle. Capital must not exceed the amount, determined according to section 12 paragraph 1 to 3 according to the capital allocation method. For the calculation of this maximum amount are the relevant to the taxation balance sheet approaches of the domestic company to be based, unless they approach of other values leads in some cases to a conclusion of the establishment, which better corresponds to the arm's length principle.
(3) an endowment capital sentence 2 exceeding the amount referred to in paragraph 2, may be associated with only a foreign permanent establishment, as far as non-tax legislation of the State in which the permanent establishment is situated, require this.
(4) the capital actually reported in a foreign trade balance of foreign permanent establishment as capital is a foreign permanent establishment notwithstanding paragraphs 1 to 3 at most associate.
(5) the allocation of human resources functions, assets or opportunities and risks compared to the beginning of the marketing year changes within one business year and this leads to significant changes in the amount of endowment capital, referred to in paragraph 1 to assign the foreign permanent establishment, capital is accordingly.

§ 14 mapping other liabilities (1) the establishment of a company which is subject to accounting or actually maintains books, according to domestic or foreign law are to allocate the other liabilities of the company, the mapping of to be assigned in the auxiliary and Nebenrechnung risk and endowment capital which are (direct mapping) in immediate connection with the assets associated with the establishment, as well as the risks and opportunities associated with it.
(2) exceeds the amount of the other liabilities, which are directly associated with the facility could (directly mapping enabled liabilities), the amount that remains after the allocation of to be assigned in the auxiliary and Nebenrechnung risks and of the Endowment capital for an allocation of liabilities to the permanent establishment, shall be in proportion to shorten these liabilities directly mapping enabled. The proportion of directly mapping enabled liabilities, which will remain after the cuts, is allocated to the permanent establishment.
(3) a net loss on liabilities for the facility, remains after determining the to be assigned in the auxiliary and Nebenrechnung risks and of the Endowment capital and the direct mapping of other liabilities this shortfall with other liabilities of the company to fill up (indirect Association) is so.

§ 15 (1) finance costs of a company, who with liabilities related directly to associate an establishment of this company according to § 14 paragraph 1, are of allocation of finance costs also this facility.
(2) which are according to § 14 paragraph 2 in proportion to shorten directly mapping enabled liabilities, also the finance costs related to this direct mapping enabled liabilities directly related, correspondingly to cut should be.
(3) If a direct mapping from financing expenses of the company to the facility is not possible or would result in a disproportionate effort, are proportionately to associate the establishment of financing expenses of the company according to the indirect assignment of liabilities. In this case, the proportion of the permanent establishment of the financial expenditure of the company determined according to the ratio of the remaining liabilities, which are indirectly allocated to the permanent establishment to the other liabilities of the company arising at the beginning of each marketing year. The proportion of the permanent establishment of the financial expenditure is to determine if this results in individual cases a result of the permanent establishment, that corresponds better to the arm's length principle by way of derogation from sentences 1 and 2.
(4) the domestic permanent establishment of a foreign company, which is not subject to the accounting according to foreign law and indeed no books, is a financing expense of the foreign company to assign only insofar as this is directly connected with the business activities the establishment. Pursuant to sentence 1, an association requires that a result from its activities remains the establishment that corresponds to the arm's length principle.
(5) the foreign permanent establishment of a domestic company, which is not subject to the accounting according to domestic law and indeed no books, is a financing expense of the domestic company associate, if it is directly connected with the business of the permanent establishment. At least the share of financing costs to associate, which corresponds to their share of the external sales of the domestic company is the foreign establishment. Paragraph 3 sentence 3 shall apply mutatis mutandis.
Subsection 4 serious debt relations section 16 principle (1) between a permanent establishment and the other company is a serious debt relationship within the meaning of § 1 paragraph 4 sentence 1 number 2 of the foreign tax act before, if economic operations, 1 which require a change of assignment § 5-11 relation between the premises and the other companies according to the § or 2 the , the permanent establishment and the other companies were independent companies, a) would be governed by debt agreements or b) would lead to the assertion of legal positions.
(2) for serious debt relationships, transfer pricing are to be, which comply with the arm's length principle. This transfer pricing lead to fictitious operating revenues and fictitious business expenses.
(3) If a facility uses financial resources of the other company, so no serious debt relationship exists. This does not apply when to apply article 17 is 1 or 2. on the basis of business of a permanent establishment in the current financial year financial resources of the facility emerge, be demonstrably used company indeed for certain purposes.
A serious debt relationship pursuant to sentence 2 number 2 is considered provision of financial means between the permanent establishment and the remaining company and ends no later than 1 with the end of the current marketing year or 2 with an adaptation of the dotation capital according to article 12, paragraph 6, or article 13, paragraph 5.

Article 17 financing function within a company (1) a financing function within a company includes the liquidity through a permanent establishment (financing facility) for one or more other establishments of the same company. In particular the raising of funds, the allocation of resources and the external investment of liquidity overhangs belong to liquidity management.
(2) the exercise of a finance function within a company is a serious debt relationship, which is usually as a service rather than making their own financial resources of financing facility. For such a service is to be applied transfer pricing to determine a cost-based transfer pricing method according to article 16, paragraph 2, sentence 1. Finance costs and finance income of the company, caused by the activities of the financing facility will not affect the cost of financing facility.
(3) can not be established, that costs of the financing facility, directly caused by a certain other site, or such a determination, impose a disproportionate burden, the cost of financing facility plus a reasonable mark-up are causing fair on the other premises, which use the finance function to split.
(4) assets, the basis for an external system of liquidity overhangs are or which arise on the basis of the external investment of liquidity overhangs, and are income from these assets to associate not the financing facility, but each the other premises. A direct mapping of assets and income arising on the basis of the finance function to the other premises is not possible or it would be disproportionately expensive, these assets and their income are proportionally allocate the other premises. The origin of the liquidity overhangs is crucial for the Division.
(5) liabilities arising on the basis of the finance function for the company, are not the financing facility, but to associate the other permanent establishments in accordance with article 15, paragraph 1. Paragraph of 3 (6) positive balances on clearing accounts, which arise on the basis of the finance function in the ratio of financing facility to the other premises, are not considered assets within the meaning of section 7 or section 8 applies the assignment of appropriate finance costs § 15. You are not to pay interest on.
(7) paragraphs 1 to 6 shall not apply if in individual cases 1 in the financing facility in terms of any assets and liabilities as well as staff functions are exercised on the related opportunities and risks require a mapping of the assets and the liabilities to the financing facility, and 2nd one is called transfer pricing method in paragraph 2 a result for the finance function , which corresponds better to the arm's length principle.
Section 2 General characteristics for bank establishment § 18 is a permanent establishment, 1 which is part of a credit institution within the meaning of § 1, clause 1 of the Banking Act or part of a financial services institution in the sense of § 1 paragraph 1a of the Banking Act, or the part of a comparable business in the sense of the foreign bank supervision law and the banking operates 2, is a banking establishment, subject to the sections 1 to 17 , as far as no derogation is made in this section.

Article 19 specific mapping rules (1) is an asset, the subject of banking transactions in the sense of § 1, clause 1 of the Banking Act or of financial services within the meaning of § 1 paragraph 1a of the Banking Act, is to assign a bank branch when the entrepreneurial risk taking function in this Bank facility will be exercised. Entrepreneurial risk taking function with credit institutions is the personnel function, exercise which causes that the rewards associated with the asset value and risks of the company arise.
(2) various bank establishment in terms of exercise on an asset at the same time each a staff function, which meets the requirements of paragraph 1, as the asset is to allocate Bank establishment, whose personnel function the greatest importance is attached to. This HR function is considered entrepreneurial risk taking function. The Association is determined by the staff functions carried out up to the time of the formation of the respective asset. The Bank facility which exerts on an asset the entrepreneurial risk taking function in terms of the asset, as well as the associate-related opportunities and risks to the asset.
(3) an asset can not clearly be associated pursuant to paragraph 2, he shall associate the Bank premises, to which the asset belongs the customer relationship, to associate. A different mapping is only to make, if this results in individual cases a result of the Bank establishment, that corresponds better to the arm's length principle.
(4) the proper assignment of an asset must be changed only if 1 the change means that the asset value of the Bank establishment is associated to the relevant customer relationship is and in the Bank branch which was associated with the asset value, no staff functions in terms of be exercised on the asset or 2 gives the allocation in each case a result bank operating facility, that corresponds better to the arm's length principle.
(5) an asset in the sense of paragraph 1 a bank branch is to associate and an other permanent establishment in terms of exercising a supporting staff function on this asset, a transfer pricing is according to section 16 paragraph 2 sentence 1 for providing this personnel function to apply, which corresponds to the arm's length principle. Such support staff functions can serve 1 to perform the actual entrepreneurial risk transfer function, the subsequent management of the asset cover 2. or other helper functions be 3.
(6) article 16 paragraph 3 applies for bank establishment with the proviso that a serious debt relationship that is financial resources, as provision is to be also based on section 16, paragraph 3, sentence 2, if 1 the credit institution that beyond the of article 16 paragraph 3 duration in connection with the business policy of the Bank and on the basis of the human resources functions which are exercised in connection with the provision and receipt of funds that is appropriate, and 2. that produces a result bank operating facility beyond the duration in the case of article 16, paragraph 3, which better corresponds to the arm's length principle.

Article 20 dotation capital domestic bank establishment of foreign banks, Bank regulatory law (1) a domestic bank branch of a foreign credit institution is the percentage of the equity of the foreign credit institution associate, corresponding to their share of the total of the risk-weighted amounts of position of the foreign credit institution in the sense of the foreign bank supervision law (capital allocation method for bank establishment). For the determination of the respective component, the credit institution's internal risk-weighted amounts of the position are to ignore.
(2) a lower Endowment capital as according to paragraph 1 can only associate the foreign credit institution in the domestic bank premises as far as this leads to a result of domestic banking establishment, in relation to the other companies the arm's length principle on the basis of the assets associated with it, as well as to better match their associated risks and rewards. The domestic bank facility have at least a capital that would show them after prudential principles as core capital, if she would be a legally independent, domestic credit institution (minimum capital equipment method for bank establishment). Applied the minimum equity equipment is so to increase capital by 0.5 percentage points of total risk-weighted amounts of domestic bank establishment position, unless a smaller surcharge gives a result of bank operating facility that better corresponds to the arm's length principle.
(3) a foreign credit institution can refrain from paragraphs 1 and 2 for its domestic bank facility to apply, if 1 is less than EUR 1 billion the sum of assets of aid and Nebenrechnung domestic bank operating facility and 2 for the domestic banking establishment an endowment capital amounting to at least 3 percent of the amount of the assets of the auxiliary and Nebenrechnung is shown, but at least 5 million euros.
(4) paragraph 1 shall apply only if the foreign credit institution 1 not applying the scheme or 2 can prove that his capital would suffice even after the bank supervisory law applicable for a domestic bank branch of a foreign credit institution based in one State of the European Union or the European economic area, in which a credit institution may apply a system that corresponds to the section 2a of the Banking Act, , if it would not apply the system.
So is the foreign credit institution applies the foreign settlement and is proof is not provided pursuant to sentence 1 number 2, for the discovery of the Endowment capital, which is the domestic bank facility to assign to apply paragraph 1 mutatis mutandis with the proviso that 1 for the determination of equity, is to consider that the calculation, the Bank regulatory core capital of the foreign credit institution group is governed by , which, if it were a domestic group of institutions, the conditions of Article 10a, paragraph 1 of the Banking Act in connection with articles 92 et seq. Regulation (EU) No. 575 / 2013 of the European Parliament and of the Council of 26 June 2013 on supervision requirements for credit institutions and investment firms and for amending the Regulation (EU) No. 646 / 2012 (OJ L 176 of the 27.6.2013, p. 1, L 208 of the 2.8.2013, p. 68, L 321 of the 30.11.2013, p. 6) would meet in the currently valid version, and 2 for the calculation of the share of the domestic banking branch of the core capital of the foreign credit institution group, is the sum of the risk-weighted position amounts the Bank facility to the sum of the risk-weighted amounts of position of the Group of credit institutions without taking into account the internal group risk-weighted amounts of position, in the relationship.
(5) section 12 paragraph 6 is to apply subject to the proviso that the amount of endowment capital attributable to the domestic bank facility to adapt also is as far as this requires domestic banking supervision law. In addition, article 12 shall apply mutatis mutandis.
(6) paragraphs 1 to 5 shall not apply to domestic branches of foreign financial services Institute, which is subject to no regulatory capital requirements.

Section 21 is dotation capital foreign bank branch of domestic banks, Bank regulatory law (1) foreign bank operating facility of domestic credit institutions to assign a dotation capital according to article 13, paragraph 1, unless unless the foreign bank supervisory law applicable contains mandatory provisions for the minimum amount of capital, which would have to comply with the foreign bank branch, if it were an independent foreign credit institutions (minimum capital equipment method for bank establishment). The domestic credit institution has to prove the reasons for the approach of a higher Endowment capital as to article 13, paragraph 1.
(2) a higher Endowment capital as according to paragraph 1 can only associate the domestic credit institution of the foreign bank branch as far as higher Endowment that produces a result of the foreign bank branch, which better corresponds to the arm's length principle on the basis of the assets associated with it, as well as risks and opportunities associated with it. There are the prerequisites of sentence 1, the upper limit of the amount available is the amount resulting from application of the capital allocation method for bank establishment according to article 20, paragraph 1.
(3) a higher Endowment capital as according to paragraph 2 may be associated with only foreign bank operating facility, as far as this requires the foreign bank supervision law for foreign independent banks and the domestic credit institution follows the relevant regulations for its foreign banking establishment. Sentence 1 is to apply only as far as the other companies remains mathematically at least as much capital as it would require domestic banking supervision law.
(4) a domestic credit institution is 1 part of a domestic group of institutions, section 2a of the Banking Act to apply is on the, or part 2 a foreign group of institutions, to the rules of another State of the European Union or the European economic area, the article 7 of the Regulation (EU) No. 575 / 2013 of the European Parliament and of the Council of 26 June 2013 on supervision requirements for credit institutions and investment firms and for amending the Regulation (EU) No. 646 / 2012 (OJ L 176 of the 27.6.2013, p. 1) is comparable, to apply, and this domestic credit institution through a lower core capital of banking supervisory principles for the sum of the risk-weighted amounts of position without application of section 2a of the Banking Act or the scheme of another State of the European economic area, the article 7 of the Regulation (EU) No. 575 / 2013 is similar as is required, shall as a minimum Endowment capital referred to in paragraph 1 can be assigned to only a foreign bank branch of the credit institution , as far as the other companies remains a core capital that would be required after prudential principles for the sum of the risk-weighted amounts of position of the other company.
(5) article 13, paragraph 5 shall apply with the proviso that the amount of endowment capital to be associated with the foreign bank branch also customize is, so far as it requires the foreign bank supervision law. In addition, article 13 shall apply mutatis mutandis.
(6) paragraphs 1 to 5 shall not apply for a foreign bank branch of a domestic financial services Institute, which is subject to no regulatory capital requirements.

Section 22 (1) financial instruments within the meaning of § 1, clause 11 set 1 of the Banking Act, is traded by financial institutions in markets of all over the world (global trade with financial instruments), around the clock global trading with financial instruments are to associate according to § 19. The global trade with financial instruments include in particular 1 global emissions and the global distribution of financial instruments, 2. the activity as a market maker in the sense of § 23 paragraph 4 of the securities trading act for physical securities, 3. the activity in the stock and commodity exchanges, 4. the development of new financial instruments.
(2) is exercised in the global trade in financial instruments the entrepreneurial risk taking function in various banking facility and a unique mapping of individual financial instruments not or only with unreasonable efforts can be carried out, are from the financial instruments tax realised and unrealised results on the Bank facility involved in global trade to split after a proper distribution key. Are the opportunities and risks arising from the financial instruments for the determination of the dotation capital 1 Pro rata account according to §§ 20 and 21 according to set, so the financial instruments can be associated by way of derogation from sentence 1, if 1 this is shown in the help and Nebenrechnung according to § 3 and 2 the results of the Bank establishment, taking part in the global trade, are not affected.
(3) serious debt relations related to the entrepreneurial risk taking function in global trade with financial instruments, is the incident business residual profit split method to apply, unless, in individual cases the application of a different method leads to a result that is more in keeping with the arm's length principle.
Section 3 special features for insurance establishment article 23 General a permanent establishment, 1 which is part of an insurance undertaking within the meaning of § 1, clause 1 No. 1 of the insurance supervision Act or part of an insurance undertaking in the sense of foreign insurance supervisory law and 2. that conducts insurance business is an insurance facility, subject to the sections 1 to 17, as far as no derogation is made in this section.

Section 24 special allocation schemes (1) is an asset that arises through the conclusion of an insurance contract, to associate an insurance facility, the entrepreneurial risk taking function in this insurance facility is exercised. Entrepreneurial risk taking function is the personnel function of the drawing process, exercise which causes that the contract of insurance-related opportunities and risks, in particular the technical risk of the insurance contract, the insurance undertaking shall be adopted by insurance companies. The drawing process consists of 1 defining the drawing strategy, 2. the risk classification and risk selection, 3. pricing, 4. the analysis of the risk disclosure and 5. the assumption of the insured risks.
(2) the exercise of entrepreneurial risk taking function determines not only about the assignment of the insurance contract to a permanent establishment of insurance, but also the allocation of the contract of insurance-related assets, the associated operating revenue and operating expenses as well as the related opportunities and risks.
(3) human resources functions of the drawing process in various insurance facility is exercised, is an asset, created by the conclusion of an insurance contract, to associate the insurance facility, whose personnel function the largest importance to the conclusion of the insurance contract. This HR function is considered entrepreneurial risk taking function. The assignment of an insurance contract is determined by the staff functions exercised up to the conclusion of the insurance contract.
(4) in the reinsurance business is refutable to suggest that in the process of drawing the risk selection and risk classification is the HR function with the greatest importance and therefore the entrepreneurial risk transfer function for a reinsurance agreement.
(5) a foreign insurance undertaking has a branch within the meaning of §§ 106, 110a, 121 h or 121i of the insurance supervisory Act, is a domestic insurance facility, so it is likely that with respect to an insurance contract to completion is considered the main agents appointed for the establishment in accordance with article 106 paragraph 3 sentence 3 of the insurance supervision act as authorized, the entrepreneurial risk taking function in the sense of paragraphs 1 to 4 in the Office is exercised. The presumption may only be rebutted if the foreign insurance company can prove that 1 the entrepreneurial risk transfer function for the insurance contracts referred to in sentence 1 not in the domestic insurance facility is exercised, and 2. the facts consistently was communicated to the German insurance supervision authority and the insurance supervisory authority responsible for the foreign insurance companies.
(6) an insurance contract is a foreign insurance branch of a domestic insurance company, which is one of the German insurance supervision is subject to comparable supervision and for a main representative according to § 13 was ordered b paragraph 1 sentence 1 No. 3 of the insurance supervision law or for which an any other duly authorised person is similar to a general representative in the sense of article 106 paragraph 3 of the insurance supervision law, was appointed corresponding foreign insurance regulatory requirements , only then to match, when the entrepreneurial risk taking function in the sense of paragraphs 1 to 4 actually carried out in the foreign permanent establishment of insurance. (In the foreign permanent establishment of insurance only the personnel functions of the drawing process carried out, which are directly connected with the adoption of the risk insured, the insurance contract only the foreign insurance branch to allocate, 1 in it in addition one of the following staff functions that are not part of the drawing process is exercised shall: a) product management and product development, b) sales and marketing or c) risk management, reinsurance, and 2.
If outweighs the importance of the HR functions exercised in the foreign permanent establishment of insurance.
(7) article 19, paragraph 5 shall apply mutatis mutandis.

Section 25 is dotation capital domestic insurance establishment of foreign insurance companies, insurance regulatory law (1) for determining the dotation capital domestic insurance establishment of foreign insurance companies the insurance facility in a first step a portion of the assets of the foreign insurance company to associate, which are used to cover the technical provisions and the equity of the foreign insurance company. The share of the insurance facility is calculated according to the ratio of technical provisions for life insurance contracts, which are allocated to the domestic insurance facility for the technical provisions, which are shown in the balance sheet of total of the foreign insurance company.
(2) in a second step the technical provisions and the liabilities arising from insurance conditions are of the assets associated pursuant to paragraph 1 and to deduct prepaid expenses, to determine which are the sections 341e to 341 h of the commercial code, as well as to the insurance company accounting regulation of 8 November 1994 (BGBl. I S. 3378), most recently by article 27 paragraph 9 of the Act of 4 July 2013 (BGBl. I S. 1981) has been modified , in the applicable version. The result is (modified capital allocation method for insurance facility) capital attributable to the domestic insurance facility.
(3) a lower Endowment capital as according to paragraph 2 may only associate the foreign insurance companies in the domestic insurance establishment, as far as this leads to a result of domestic insurance establishment, in relation to the other companies the arm's length principle on the basis of the assets associated with it, as well as to better match their associated risks and rewards. The domestic insurance facility must show at least a capital, that would show them according to insurance regulatory principles as equity, if she would be a legally independent insurance companies (minimum capital equipment method for insurance facility).
(4) gives way to capital, which was associated with a domestic insurance permanent establishment of the foreign insurance companies, to associate that according to paragraph 2 of the Endowment capital, is, are referred to in paragraph 1 to allocate assets to adjust the capital referred to in paragraph 2.
(5) section 12 paragraph 6 is to apply subject to the proviso that the amount of mapped dotation capital to adapt also is as far as this requires domestic insurance supervision law. In addition, article 12 shall apply mutatis mutandis.

Section 26 is dotation capital foreign insurance branch of domestic insurance companies, insurance regulatory law (1) the foreign insurance branch of a domestic insurance company to assign a dotation capital according to article 13, paragraph 1, unless unless the foreign insurance supervisory law applicable contains mandatory provisions for the minimum amount of capital, which would have to comply with the foreign insurance facility, if she were an independent foreign insurance companies (minimum capital equipment method for insurance facility). The domestic insurance companies has demonstrate the reasons for the approach of a higher Endowment capital as to article 13, paragraph 1.
(2) a higher Endowment capital as the insurance regulatory minimum capital referred to in paragraph 1 may only assign the domestic insurance companies of foreign insurance branch as far as this leads to a result of foreign insurance branch, which better corresponds to the arm's length principle on the basis of the assets associated with it, as well as risks and opportunities associated with it. Capital does not exceed the amount, resulting from the application of the modified capital allocation method for insurance establishment according to § 25 paragraph 1 and 2.
(3) a higher Endowment capital as according to paragraph 2 may be associated with only the foreign insurance branch, as far as this requires foreign insurance supervision law and the domestic insurance companies follow the appropriate rules for its foreign insurance branch. Sentence 1 is to apply only as far as mathematically at least as much remains the other companies capital, as would be required by domestic insurance supervision law.
(4) article 13, paragraph 5 is to apply subject to the proviso that the amount of mapped dotation capital to adapt also is as far as this requires foreign insurance supervision law. In addition, article 13 shall apply mutatis mutandis.

Section 27 (1) income derived from assets are assigning income from assets to associate an insurance establishment, if these assets are used one or more of the following purposes: 1. covering the technical provisions of the insurance facility, 2 covering the liabilities arising from insurance conditions and prepayments of insurance facility or 3. the covering of the Endowment capital of the insurance facility.
(2) where a direct mapping of assets and income is not possible, one belong to income according to the average investment yield of the insurance undertaking insurance facility.

§ 28 reinsurance within a company are the underwriting risk that must not be an insurance establishment on basic applicable to assignment of an insurance contract is associated, by a serious debt relationship, which is comparable with a reinsurance agreement between legally independent insurance company, associated with the other companies.

§ 29 pension funds and insurance special purpose vehicles the sections 23 to 28 apply mutatis mutandis to a facility that operates similar transactions and the 1 is part of a pension plan within the meaning of section 112 of the insurance supervision Act or a comparable foreign supervisory law with insurance transactions or 2. is part an insurance special purpose company in the sense of § 121 g of the insurance supervision Act or a comparable foreign supervisory law.
Section 4 carries out general information for a facility, the construction or Assembly features of construction and assembly operations section 30 and ends upon completion of construction or installation work (construction and installation facility), apply the sections 1 to 17, as far as no derogation is made in this section. A company that belongs to the, a construction and assembly facility is a construction and installation company.

Article 31 specific mapping rules (1) is a material asset used in a construction and assembly facility, only in accordance with article 5, paragraph 1, sentence 1 to associate this, if there in addition to the use also staff functions are exercised, that are related to the acquisition, manufacture, sale or exploitation of the physical asset. Pursuant to sentence 1, the Association requires that the significance of known staff functions, which are exerted on the material asset in the construction and assembly facility in terms of clearly predominates to the extent carried out human resources functions of the other company.
(2) a material asset in the sense of paragraph 1 is to associate not the construction and assembly facility, is to assign the other companies and is provided free of charge as the construction and assembly facility.
(3) that paragraphs 1 and 2 apply accordingly for the allocation of assets to the §§ 6-8th (4) the construction or installation contract with the client is a business transaction within the meaning of article 9, which belongs to the other companies. This mapping can only be change when 1 clearly the largest importance to the personnel functions exercised in the construction and assembly facility in connection with the contract, and in particular the preparation and completion of the Treaty, to consider providing the necessary assets and the fulfilment of the obligations arising from the contract are, or 2. functional reasons to go out is with the legal consequences of article 16 , that construction and assembly facility, she would be an independent third party, had taken over the building or installation contract with the contracting authority by the other companies.

§ 32 serious debt relationships, to be regarded as services are
(1) the participation of a construction and assembly facility in the performance of the completed the construction and installation company build and installation contract procedures considered serious debt relationship, which is a service of the construction and assembly facility compared with the other companies. The transfer pricing for the service is usually to determine a cost-based transfer pricing method. Including all necessary personnel costs which are directly caused by the provision of HR functions in the construction and assembly facility include the costs of construction and assembly facility, which are to take into account for the application of this method.
(2) the service of the construction and assembly facility compared with the other companies consists of different bundles of performance, they should be uniformly charge, unless separate transfer pricing for every performance bundle in some cases lead to a result that is more in keeping with the arm's length principle.
(3) the services providing construction and assembly facility to the other company is according to the service continuously to settle, regardless of whether the construction and installation company has a claim for payment against the employer only acceptance or partial acceptance of due performance. Another account between the construction and assembly facility and the other company is to perform only if this leads in some cases to a result that corresponds better to the arm's length principle.
(4) services, which also provided companies in connection with the construction and installation contract of construction and installation company, deemed to also not provided to the construction and assembly facility, if they are the construction and assembly facility in connection with the services.

§ Notwithstanding is 33 serious debt relations in special cases (1) the transfer pricing for the serious debt relationship between the section 32 construction and assembly facility and the other companies to determine if 1 the HR functions, each exercised by the other companies in terms of both the construction and assembly facility to meet the construction and installation contract for a profit split method , represent any routine activity and cause that each comparable opportunities and risks are allocated to, or 2 for the performance of construction or installation contract of the construction and assembly facility, as well as by the other company are unique intangible values themselves developed or acquired.
(2) the allocation key of that is referred to in paragraph 1 for the profit split method to use is determined by contributions, provided each of the construction and assembly facility and the remaining companies for the construction and installation contract. The amount of the contributions is calculated according to the costs of the relevant HR functions carried out construction and assembly facility and the other companies for the construction and installation contract. Also a reasonable proportion is 1 intangibles in the research and development costs of the as well as 2 unsuccessful acquisition costs not materialised construction and Assembly contracts.
Another allocation key is to apply, if this results in individual cases a result of the construction and assembly facility, which better corresponds to the arm's length principle.

The income of a building founded already before 1 January 2013 and assembly facility until the end of the construction or assembly plant after tax principles recognised so far by the financial authority determine article 34 transitional arrangements for construction and assembly operations (1) that can be construction and installation company.
(2) the construction and installation company may, notwithstanding section 1 paragraph 5 of the foreign tax Act, paragraph 1 also on construction and installation premises, which in the years 2013 and 2014 due, apply, if it can prove 1 that it has gone out for the pricing of its services from the application of the tax principles recognised so far by the financial authority, and 2 proves that the regulations destroy the basis of this regulation of its calculation.
Section 5 specifics for support establishment § 35 General information (1) for a facility that is created for the promotion of mineral resources and after the promotion ends (funding facility), the sections 1 to 17 shall apply, unless no derogation is made in this section. A company belongs to which a support facility, is a mining company or a petroleum or natural gas undertakings.
(2) an exploration right is the right to search for natural resources or promote.

Article 36 special allocation schemes (1) is an exploration right, used for the exercise of staff functions in a funding facility of a mining company or a petroleum or natural gas company, to allocate this funding facility only, if in addition there 1 the personnel functions relating to the purchase or production of the exploration right be exercised, or 2. the distribution or the exploitation of the extracted mineral resources is.
Pursuant to sentence 1, the Association requires that the importance of the above staff functions carried out in the funding facility in terms of the exploration right clearly predominates to the extent carried out human resources functions of the other company.
(2) can the exploration right to associate not the funding facility referred to in paragraph 1, is to assign the remaining company and is free of charge provided as the funding facility.
(3) by way of derogation from paragraph 2 the exploration right of support facility at the time of the commencement of funding activities to match, when the mining company or the petroleum or natural gas companies can prove that the State in which is situated the funding facility, also comes from this Association. The Association is to maintain, as long as the State in which is situated the funding facility, is based on the appropriate allocation of the exploration right.
(4) in the cases of paragraph 2, section 31, paragraph 1 and 3 shall apply mutatis mutandis for the allocation of assets to a funding facility. In the cases of paragraph 3, sections 5 to 8 apply to the allocation of assets to a funding facility.

§ 37 serious debt relations (1) the activity of a funding facility using a right of exploration, which was purchased by a mining company or a petroleum or natural gas company is on the basis of an adopted debt relationship (§ 16), for which is refutable to suspect, that you as a service of the funding facility compared with the other companies to look at is. The transfer pricing for the service is to determine a cost-based transfer pricing method. Including all necessary personnel costs directly caused by the provision of HR functions in the establishment of the funding include the cost of the funding facility, which are to take into account for the application of a cost-based transfer pricing method.
(2) the application of § 36 paragraph 3 to a change the allocation of exploration right, leads to a serious debt relationship within the meaning of article 16, paragraph 1 is number 1 between the other companies and the funding facility which is equivalent to a sale. An amount is to be used, the section 16 paragraph 2 sentence 1 corresponds to.
(3) a mining company or a petroleum or natural gas undertakings can be however by way of derogation sentence 2 a price for the serious debt relationship within the meaning of paragraph 2 of paragraph 2, which is considered third-party comparison price, although he applicable amount falls below the after section 16, paragraph 2, sentence 1. The prerequisite for this is that the mining company or the petroleum or natural gas undertakings 1 proves that this avoids double taxation, and 2. is at least the amount which corresponds to the expenses in the mining company or the petroleum or natural gas company in terms of the exploration right up to have originated when of the change of the map.
(4) in the case of article 36, paragraph 3, it is important to note that the exploration rights of the funding facility to assign is in regard to the function and risk analysis for the determination of the income of the support site. This applies as long as the State in which is situated the funding facility, is based on a mapping of the exploration right to the establishment of the funding.

The income of a funding facility established before 1 January 2013 until the end of the funding facility after tax principles recognised so far by the financial authority determine § 38 transitional arrangements for funding facility (1) that can mining companies, oil or natural gas undertakings.
(2) the mining company or the oil or natural gas can, notwithstanding § 1 paragraph 5 of the foreign tax Act, paragraph 1 on funding permanent establishment apply, for the exploration right already was managed 2013 or 2014 in the year or produced, if it 1.
proves that it is assumed for its calculation of the application of the principles recognised so far by the financial authority, and 2. believable is that the regulations destroy the basis of this regulation of its calculation.
Section 6 Permanent Representative § 39 Permanent Representative (1) this regulation is to apply mutatis mutandis to permanent representative within the meaning of § 13 of the tax code.
(2) if it is a permanent representative to a legally independent companies with their own staff within the meaning of section 2, paragraph 4, so all HR functions carried out by the staff of the Permanent Representative for the represented to treat your own personnel functions of the represented as are contrary to article 2, paragraph 3 for the proper application referred to in paragraph 1.
Section 7 final provisions § 40 initial application of this regulation is to apply for fiscal years beginning after December 31, 2014.

Article 41 entry into force this regulation enter into force on the day after the announcement.

Concluding formula the Federal Council has approved.