Germany: Updated guidance on mutual agreement and arbitration procedures
Provides new rules on eligibility to apply
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