Germany Stops New Advance Pricing Agreements With China

Germany is putting a hold on new advance pricing agreements with China until further notice.

According to a notice, Germany’s goals of avoiding double taxation and achieving consistent interpretations of agreements with foreign jurisdictions could no longer be achieved in negotiations with China.

• The German Federal Central Tax Office said that efforts are underway to improve the situation, but until then it won’t initiate any new APAs, including renewals, with China. APAs that are currently underway won’t be affected.
• Advance pricing agreements, or APAs, allow taxpayers to work with one or more competent authorities to agree on tax positions ...