7. Germany
Monetary threshold for LF preparation
Applicable if related-party transactions exceed any of the following thresholds:
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EUR 6 million for tangible (inventory) transactions
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EUR 600,000 for non-inventory (e.g., services, royalties) transactions
Preparation deadline
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There is no explicit statutory deadline. However, contemporaneous documentation must be prepared for extraordinary business transactions within 6 months after the end of the fiscal year.
Submission deadline
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Within 30 days of a request by the tax authorities.
Language
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German is required, but English may also be accepted.
Penalty
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A penalty ranging from 5% to 10% of the additional income from a correction may be imposed, with a minimum of EUR 5,000.
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Failure to submit the LF on time may result in a penalty of up to EUR 1,000,000, with a minimum of EUR 100 per full day of delay.