Dr. Hanne Böckem
Partner, Audit, DPP
KPMG AG Wirtschaftsprüfungsgesellschaft
On 21 June 2023, the Act on the Implementation of Directive (EU) 2021/2101 with regard to the Disclosure of Income Tax Information by Certain Companies and Branches and Amending the Consumer Dispute Resolution Act and the Compulsory Insurance Act was published in the Federal Law Gazette.
The Act essentially regulates the obligations to prepare, disclose and audit so-called income tax information reports.
Income Tax Information Report
Certain large, multinationally active companies must prepare and disclose an annual income tax information report in accordance with the new sections 342 et seq. inserted into the Commercial Code. The report contains, among other things, country-specific information on income, pre-tax profit and taxes. The auditor must check whether the previous year's report has been disclosed.
Amendment of other regulations
The Act also amends other provisions of the Commercial Code (not relating to the income tax information report). For example, the legal definition of the term "affiliated company" in section 271 (2) HGB has been amended. The other changes are essentially of an editorial nature.
Date of application
The provisions on the income tax information report are applicable for the first time for a financial year beginning after 21 June 2024. Different dates of application have been specified for the other provisions.
The law can be downloaded here.