KPMG report: German case law regarding transfers of functions
Some courts have held in favor of taxpayers arguing their transactions did not result in transfers of functions.
The tax treatment of transactions involving a transfer of functions (ToF) is explicitly regulated under German law, and when a ToF is found to occur, taxpayers generally face a significant tax assessment. However, some courts have held in favor of taxpayers arguing that their transactions did not result in ToFs.
Read a January 2025 report prepared by the KPMG member firm in Germany