Profit Transfer

A Profit Transfer relationship indicates that a company has entered into a profit transfer agreement (Gewinnabführungsvertrag) under which it is required to transfer its entire annual profit to another company. Such agreements are commonly used within corporate groups and may form part of a broader control and profit transfer agreement.

In North Data, this term is used when official commercial register records or corporate filings document a profit transfer agreement between two companies.

Example:

Mercedes-AMG GmbH concluded a control and profit transfer agreement with Mercedes-Benz AG in 2020. Under this agreement, Mercedes-AMG GmbH transfers its profits to Mercedes-Benz AG in accordance with the contractual provisions. Therefore, the relationship is classified as Profit Transfer.