Information sheet on the transaction matrix

Since 1 January 2025, taxpayers have been legally obliged to prepare a transaction matrix as a new component of the transfer pricing documentation in accordance with Sec. 90 (3) AO and to submit it to the tax authorities upon request or, in the event of an external audit automatically within 30 days of notification of the audit order. The transaction matrix is a structured, tabular overview with relevant information on cross-border business relationships with related parties and permanent establishments.

In the information sheet dated 2 April 2025, the individual components of a transaction matrix are listed - in accordance with the explanatory memorandum to the law - and explained in more detail using examples. Regarding the information on the contractual basis, the BMF clarifies that existing contracts only need to be named, but not attached to the transaction matrix. For the purpose of stating "whether transactions are not subject to standard taxation in the relevant tax jurisdiction", the BMF specifies that transactions are not subject to standard taxation if, for example, a preferential tax regime (e.g. license box) is applicable in the relevant tax jurisdiction. Furthermore, the BMF states that business transactions with a related party or permanent establishment that are economically comparable in terms of functions and risks can be combined into groups in the transaction matrix (Sec. 2 (3) of the Ordinance on the Documentation of Profit Allocations (GAufzV)).

In certain cases, the BMF may allow deviations in the form, content or scope of the transaction matrix according to the information sheet. However, the taxpayer must communicate and justify any requested deviations within the 30-day period at the latest.

Particular attention should be drawn to the comments on the temporal application of the new documentation requirements. According to the BMF, a transaction matrix must also be prepared for years prior to 2025 if an audit order issued in 2025 also covers audit periods prior to 2025. In addition, the BMF clarifies that the transaction matrix must also be submitted within 30 days if the audit order was issued before 1 January 2025, but a request for submission is made by the tax authorities in 2025.

The BMF also clarifies that in the case of external audits in which no foreign income tax matters are audited (e.g. special VAT audit or wage tax audit), the records only have to be submitted if explicitly requested.

If the transaction matrix is not submitted, a surcharge of EUR 5,000 is imposed according to the information sheet (Sec. 162 (4) 1 AO).

The information sheet does not contain any information on whether the simplification provisions of Sec. 6 GAufzV apply analogously to the transaction matrix.