In this article from Transfer Pricing Forum, Dr. Alexander Voegele and Philip de Homont discuss the new Authorised OECD Approach for profit attribution to permanent establishments (PEs) in relation to and compare it with the current tax laws and guidelines in Germany. The authors begin by noting that, although the German laws and guidelines contain comprehensive guidance on the profit attribution to PEs, the guidelines—as well as some of the court cases—are somewhat outdated in light of the more recent jurisprudence and the new guidelines from the OECD. The authors then discuss the circumstances in which the German authorities might consider a subsidiary of a foreign company to be a “fixed place of business PE.” The article concludes with a discussion on using the “Berry Ratio” method in Germany as an appropriate profit level indicator for selling or purchasing agents acting as service providers.