§ Section 1 (3d) German Foreign Tax Act (AStG) - tightening of cross-border financing relationships - Current view of the tax authorities and its impact on investment structures

As part of the Growth Opportunities Act, the legislator introduced an independent regulation for the determination of transfer prices for cross-border, intra-group financing relationships in Section 1 (3d) AStG. The concept of the regulation and the explanations provided by the tax authorities are generally very much geared towards group structures. Therefore, the new regulation leaves some open questions of application and interpretation for legal practitioners, particularly with regard to private equity and venture capital structures, which the authors explain and analyze in more detail in their article.