Background
The DAC7 Implementation Act already introduced shortened deadlines for the submission of records in accordance with Section 90 (3) AO (transfer pricing documentation) at the end of December 2022 by means of a new Section 90 (4) AO.
How exactly does the new provision of Section 90 (4) AO work?
- In the event of an external audit, the records are to be without a separate request be submitted within a period of 30 days after the request or notification of the examination order. The submission deadline can be extended in justified individual cases. This means a tightening of the deadline, as currently a submission only has to be made after an explicit request by the tax audit.
- The second tightening results from the Shortening of the general submission deadline from the previous 60 days to 30 days.
From when and for which examination years does the regulation apply?
The new regulation applies
- for taxes and tax refunds arising after 31 December 2024, or
- in the case of audit orders announced after 31 December 2024, also for taxes already incurred before that date.
Example 1: The audit order for the 2018 - 2021 financial years will be issued on 10 December 2024. The submission deadline is based on the previous regulation: submission only after request by the BP.
Example 2: The audit order for the 2018 - 2021 financial years will be issued on 10 January 2025. The submission deadline is based on the new regulation: submission without a separate request within a period of 30 days.
Take Away
Take these shortened submission deadlines into account in your internal processes and ensure that your transfer pricing documentation can be submitted on time from 2025, especially if you are expecting an audit request for previous years.
Your TAXGATE team will be happy to support you with the necessary documentation to avoid tax disadvantages and offers a comprehensive service in the context of tax audits, including defence against unjustified back tax payments.
