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Germany: Updated guidance on mutual agreement and arbitration procedures

Provides new rules on eligibility to apply

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March 6, 2026

The Federal Ministry of Finance (BMF) in September 2025 published updated guidance on international mutual agreement and arbitration procedures, which:

  • Reflects the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI)
  • Provides new rules on eligibility to apply
  • Simplifies digital application submission
  • Clarifies how to deal with previous mutual agreements and incidents of remaining double taxation

Read a February 2026 report* prepared by the KPMG member firm in Germany

Other KPMG “German Transfer Pricing Insights” concern:

  • Applicability of section 153 (4) AO to transfer pricing cases
  • Recent case developments relating to transfer of functions in German tax law
  • Transfer pricing adjustments and the treatment of compensatory payments

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