On 5 August 2013, the German Ministry of Finance issued a new, 84-page draft Decree on the transfer pricing treatment of permanent establishments (PEs) following the issuing of a new implementation law on legal and administrative cooperation on 26 June. Together, the law and the Decree imply profound changes and are in many aspects a complete reversal of current practices. Most importantly, the law and Decree are an attempt to put Germany in line with most of its important trading partners by following the “authorised OECD approach” for the taxation of PEs.